Prime Minister Julia Gillard should consider apologising for the sexual and physical abuse of officer cadets over several decades, a report to the Government yesterday recommended.
The report by law firm DLA Piper, one of a series into Defence Force culture, lists at least 755 "plausible" allegations that should beinvestigated.
While some victims could use courts or existing compensation schemes, the option would not be available for many, and a new capped compensation scheme should be considered, the report said.
It was one of six investigating aspects of defence culture ranging from abuse to the role of women in the military.
They were launched after allegations that a cadet broadcast his seduction of a female colleague over Skype, and the charging of two cadets who will face court next year.
The allegations also followed a series of similar complaints, and more than 1000 others later reported to the inquiry.
Defence Department secretary Duncan Lewis said the inquiry's findings were "frightening and sickening" and would take some time to address.
But another inquiry by Andrew Kirkham, QC, has cleared Defence Force Academy commandant Commander Bruce Kafer of any blame, finding he did not err in his handling of disciplinary actions against the female cadet involved.
Kafer will resume duties this week after being placed on leave last April.