The letters patent signed by Elizabeth II facilitated the creation of a uniquely Australian Victoria Cross, thereby making Australia the first Commonwealth realm to establish its own version of this prestigious military honour. This initiative arose after extensive discussions on the significance of recognizing the bravery of Australian servicemen and women in modern warfare. It symbolized not just a military accolade but also a broad affirmation of Australian identity and pride separate from its colonial past.

The Victoria Cross for Australia retained the same design as the original British Victoria Cross, a symbol of unparalleled heroism, but was awarded purely for acts of valor performed by Australians. This distinct recognition was first applied during the Gulf War. By launching its own Victoria Cross, Australia sought to strengthen its military honours system and create a unique legacy of bravery rooted in its own history and experiences.

The introduction of the Victoria Cross for Australia was also part of a larger trend by several Commonwealth nations, which began to reassess their honours systems, leading to greater autonomy in such matters and indicating a shift toward a more self-reliant recognition of national achievements. The creation of this award embodied the military ethos and a commitment to honouring the sacrifices of Australian Defence Force members while fostering a deeper national consciousness.