The League was formed in 1916 in response to the lack of a unified approach with Australian repatriation facilities and medical services for those returning from World War I.

[note 1] Their intention was to lobby for better benefits, treatment and welfare of veterans and serving members of the Defence Force and to preserve the health, wellbeing and security of Australia and the Australian way of life.

[2] During the inter-war period 1919 to 1939, the RSSILA was recognised as the appropriate body to represent the interests of returned Australian service personnel in exchange for extending political cooperation to the Nationalist Party of Prime Minister Stanley Bruce.

[citation needed] Before that time, those who defended Darwin from Japanese bombing in World War II were not eligible to join, as they had never left Australia and thus could not be "returned."

[1]: 1 RSL Australia is organised as a federation of its independent state branches, which in turn consist of 1107 sub-branches (as of 2022[update]) delivering diverse services tailored to the priorities and needs of local veterans.

[1]: 16 The League conducts a diverse range of programs and initiatives to serve its current membership and the next generation of veterans and their families.

Below the crown are the national flowers of Australia, Wales, England, Scotland and Ireland: the wattle, leek, rose, thistle, and shamrock.

[14] On 4 October 2016, the Sydney Morning Herald and ABC News reported that RSL national president Rod White, a retired major of the Australian Army Reserve, received a share in nearly $1 million of consulting fees paid by an arm of the League, RSL LifeCare, and failed to disclose conflicts of interest.

[17] In October 2016, legal advice commissioned by the RSL's New South Wales Branch indicated RSL New South Wales councillors, including Mr White, may have broken the law by receiving a share in $1 million of consulting fees while holding a voluntary position in the veteran's group: "It is possible, but not certain, that in doing so they did not meet one or more of their duties and obligations, or contravened the law.

[23][24] The RSL acting national president, Robert Dick, was subsequently reported as saying the league would be working with "regulatory bodies to deliver an appropriate corporate governance structure to ensure there is no maladministration in the NSW Branch.

[27] Over time these commercial entities, known generally as RSL Clubs (but also called Ex-Services, Memorial, Legion or other similar names)[27] generated profits and often donated to local community services.

[27][28] Licensed clubs operating under the RSL name usually have bar and dining facilities for their members and guests, and sometimes have extensive gambling areas.

Following a merger with the Royal District Nursing Service in Victoria, in 2016 it became RSL Care RDNS Limited, an Australian public company registered as a charity, trading as Bolton Clarke.

Commenced in Queensland in 1956, the RSL Art Union is a lottery that raises funds to provide welfare services to ex-service men and women, their dependents and to other members of the community.