The Victoria Cross for Australia was instituted, making Australia the first Commonwealth realm with a separate Victoria Cross award in its honours system.

The Victoria Cross for Australia is the highest award in the Australian honours system, superseding the British Victoria Cross for issue to Australians. The Victoria Cross for Australia is the "decoration for according recognition to persons who in the presence of the enemy, perform acts of the most conspicuous gallantry, or daring or pre-eminent acts of valour or self-sacrifice or display extreme devotion to duty".

A Commonwealth realm is a sovereign state in the Commonwealth of Nations that has the same constitutional monarch and head of state as the other realms. The current monarch is King Charles III. Except for the United Kingdom, in each of the realms the monarch is represented by a governor-general. The phrase Commonwealth realm is an informal description not used in any law.

The Victoria Cross (VC) is the highest and most prestigious decoration of the British decorations system. It is awarded for valour "in the presence of the enemy" to members of the British Armed Forces and may be awarded posthumously. It was previously awarded to service personnel in the broader British Empire, with most successor independent nations now having established their own honours systems and no longer recommending British honours. It may be awarded to a person of any military rank in any service and to civilians under military command. No civilian has received the award since 1879. Since the first awards were presented by Queen Victoria in 1857, two thirds of all awards have been personally presented by the British monarch. The investitures are usually held at Buckingham Palace.