More than 2300 women have joined legal action against the Commonwealth alleging systemic sexual abuse and harassment in the Australian Defence Force.
Joshua Aylward, the lawyer leading the class action, said the Commonwealth was trying to limit the number of women from obtaining compensation by removing all claims made by those who served in the army.
This is because the class action's four applicants are from the air force and navy.
The Commonwealth is also trying to remove claims alleged to have occurred overseas, arguing the Sex Discrimination Act does not apply abroad.
Mr Aylward said if the government and military top brass were serious about women seeking justice, they had no option but to drop the two points.
"In reality, they are trying to cut them off at the knees," he said.
"If they want to continue being two-faced and say one thing at the highest levels of government, but then turn up in court and say something completely different, that's their prerogative."
A standalone inquiry into military sexual violence is expected to get underway mid-2026, after the Royal Commission into Defence and Veteran Suicide found the issue "systemic".
Speaking on condition of anonymity, an army veteran said the class action was where she intended to share her experience of sexual assault in the military.
"The sexual violence class action must hear from all services," she said.
"It's shameful that the government would try to exclude anyone from a class action that seeks the justice that was never afforded to those impacted who have served or continue to serve our country."
The Department of Finance is managing the legal action on behalf of the Commonwealth.
"It is standard practice for parties to raise preliminary issues with the court to clarify and confirm aspects of the claim," a spokesperson said.
Asked why the government is seeking to exclude current and former army members from the class action, the spokesperson said it would be "inappropriate to comment on detailed particulars of the claim".
Donna Manton is a survivor of military sexual violence who chairs the Athena Project, a group supporting and advocating for victim-survivors.
She said it was "galling" that as Veterans' Affairs Minister Matt Keogh addressed the National Press Club last year to announce the sexual violence inquiry, the government was in court trying to limit who can join the class action.
"Trying to exclude probably the largest group of victims of sexual violence in defence, just by sheer numbers with the army, just says that they're still not taking this seriously, and they're still not worried really about victims," the army veteran said.
"It makes the victims again feel unheard, unsupported and unwanted."
Defence respected the rights of its personnel to take part in the legal action, Defence force chief Admiral David Johnston told Senate estimates in December.
Greens defence spokesperson David Shoebridge slammed the government for its "grubby" tactic.
"Excluding people in the army from joining this class action is so unimaginably mean and insensitive," he said.
"After the horrors uncovered in the royal commission and the devastating testimony heard, the government should be looking at ways to fix the broken culture, not cover it up."
The case returns to the Federal Court in Sydney on Monday.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
Lifeline 13 11 14
Fullstop Australia 1800 385 578
Open Arms 1800 011 046
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