VC winner Ben Roberts-Smith defends controversial ADF pay deal

Australian war hero Ben Roberts-Smith has defended the controversial ADF pay deal to only increase soldiers' salaries by 1.5 percent per year.

Victoria Cross winner Roberts-Smith, who was appointed the new Chair of Australia Day Council at the weekend, told the Daily Telegraph he understood the reasoning behind the deal.

“I understand what it’s like to be a soldier. You don’t get paid a lot of money in the army, you’re like everyone else who works hard," he told the newspaper.

“Would I like soldiers to get more money? Of course I would. But I am also cognisant of the fact the government was left with a deficit and there’s only so much you can do with the money that you have.

“We never did it for the money anyway. Should soldiers be looked after? Absolutely.

"Should families be looked after and get the best possible deal on the table? They should.

"Is that what’s happened? It would appear so. You can’t really argue about that.”

Palmer United Party Senator Jacqui Lambie has come out firmly against the pay deal, vowing to vote down all government legislation until ADF personnel are given a bigger pay rise.

"I am very upset – I've still got mates that are serving," she told TODAY on Friday.

"It is very disheartening."

Senator Lambie said she would be "standing her ground" and called on the Greens, Labor Party and crossbenchers to "give the diggers a fair go" and demand better pay and working conditions.

Prime Minister Tony Abbott has said the 1.5 per cent pay increase, to last for the next three years, is all the government can afford in the current budget climate.

Abbott appointed Roberts-Smith as the new Chair of the National Australia Day Council at the weekend, replacing cricketer Adam Gilchrist who had been in the role for six years.

“This is a fitting way for Ben to continue his exemplary service to the nation. As Chair of the National Australia Council, he will help to inspire national pride and lead the community’s celebrations of Australia Day,” Abbott said.