On January 15, 1991, the Victoria Cross for Australia is established by the issuing of letters patent by Queen Elizabeth II. The Victoria Cross for Australia is the highest decoration which can be awarded to military personnel in the service of the Australian military. Australia was the first of the Commonwealth nations to establish their own Victoria Cross separate from that of the British Victoria Cross, with Canada doing so in 1993 and New Zealand in 1999. Since its establishment, the Victoria Cross for Australia has only been awarded five times, including being award twice posthumously.

Trooper Mark Donaldson was awarded the Victoria Cross for Australia in 2009 for his actions in Uruzgan Province, Afghanistan, on September 2, 2008. During an ambush by hostile forces, Trooper Donaldson deliberately drew enemy fire in order to allow his wounded comrades to be evacuated to safety. Furthermore, Trooper Donaldson rescued a coalition interpreter by running into open territory 80 yards, despite heavy enemy fire, and carrying the interpreter back to the safety of a vehicle before rejoining his patrol in engaging the enemy.

Corporal Ben Roberts-Smith was awarded the Victoria Cross for Australia in 2011 for his actions Shah Wali Kot Offensive in Afghanistan on June 11, 2010. Corporal Roberts-Smith single-handedly charged and destroyed two Taliban machine gun positions.

Corporal Daniel Keighran was awarded the Victoria Cross for Australia in 2012 for his actions in Afghanistan in August 2010. During the Battle of Derapet, Corporal Keighran deliberately exposed himself to enemy fire in order to draw said fire away from a wounded comrade and the personnel tending to him.

Corporal Cameron Baird was posthumously awarded the Victoria Cross for Australia in 2014 for his actions during a commando operation in Uruzgan Province, Afghanistan, on June 22, 2013. During the operation to neutralize an insurgent network, Corporal Baird disregarded his own safety in order to ensure the safety of his men and to maintain the initiative, including personally charging and eliminating multiple enemy positions with grenades and rifle fire. Included among these actions were three charges upon a building in the enemy compound. Corporal Baird was forced to retreat the first two times due to a malfunction with his rifle and then running out of ammunition in his weapon. The third charge succeed in taking the building and neutralizing the enemy but resulted in the loss of Corporal Baird. Corporal Baird's actions and sacrifice, however, had ensured the success of the operation and the preservation of his men.

Ordinary Seaman Edward "Teddy" Sheean was posthumously awarded the Victoria Cross for Australia on August 10, 2020, for his actions during the sinking of the HMAS Armidale on December 1, 1942. The Armidale had come under Japanese air attack and was critically damaged by hits from bombs and torpedoes, forcing the order to be given to abandon the ship. After helping to free a life raft, Ordinary Seaman Sheean was struck by machine gun fire from a Japanese fighter. Though wounded and on a quickly sinking ship, Ordinary Seaman Sheean returned to his post on a 20mm Oerlikon anti-aircraft cannon and returned fire upon the Japanese attackers. He would continue to fire as the HMAS Armidale slipped beneath the surface, even as he himself was pulled below. Through the actions and sacrifice of Ordinary Seaman Sheean, a Japanese bomber was destroyed and Japanese aircraft were prevented from effectively strafing the ship's survivors