Chief of Air Force Air Marshal Angus Houston has welcomed the appointment of General Peter Cosgrove as Defence Force Chief.

Minister for Defence Robert Hill announced the appointment of GEN Cosgrove on May 28. He replaces Admiral Chris Barrie who retires on July 3.

AIRMSHL Houston, who was appointed in June last year as CAF, will continue in that role, it was also announced.

In welcoming the appointment of GEN Cosgrove, AIRMSHL Houston said he was looking forward to working with the new CDF.

"On behalf of all the men and women of the Air Force, I offer our congratulations to General Peter Cosgrove," AIRMSHL Houston said.

AIRMSHL Houston also paid tribute to the work of the outgoing CDF.

"Admiral Chris Barrie has served with distinction for the past four years and led the ADF well during many difficult and demanding operational deployments," he said.

"For Air Force, it will be business as usual as we continue to focus on our role as the provider of aerospace power for the protection of Australia's national interests."

AIRMSHL Houston received praise from Senator Hill, who said the Chief of Air Force was doing an excellent job a year into his three-year term.

"He's looking forward to the next two years when we've got some very major decisions coming up in relation to the future of our air force, massive new equipment programs and the like," Senator Hill told ABC Radio.

"And as part of the total leadership team of the ADF, he will also make a very significant contribution."

In other appointments, HDPE Rear Admiral Russ Shalders will be appointed VCDF for a term of three years, replacing Lieutenant-General Des Mueller on July 15.

COMAST Rear-Admiral Chris Ritchie will be promoted to the rank of vice admiral and appointed as Chief of Navy. He will replace Vice Admiral David Shackleton who will retire on July 2 after three years in the top Navy job.

DCA Major-General Peter Leahy will be promoted to lieutenant general and appointed as Chief of Army.