Prime Minister Tony Abbott has nominated Queen Elizabeth’s husband Prince Phillip and Former Australian Defence Force chief Angus Houston to receive Australia’s highest honour on Australia Day.

The men will be made Knights of the Order of Australia for their contributions to society.

Mr Abbott said Prince Phillip, Duke of Edinburgh, was receiving the honour to recognise his work with young Australians over the course of the Queen’s 62-year-reign.

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“Prince Philip’s long life of service and dedication should be honoured by Australia,” Mr Abbott said.

Sir Angus Houston before his retirement. Photo: Getty

“For three quarters of a century, Prince Philip has served the Crown, and the wider Commonwealth.

“He has served Australia with distinction and is patron of over 800 organisations.”

The Duke of Edinburgh Award encourages young Australians to participate in community service and outdoor activities. Twenty-three thousand young Australians are currently completing the award.

Mr Abbott also praised Scottish-born Air Chief Marshal Houston, who served in the armed forces for more than 40 years before becoming Chief of the Defence Force in 2005.

Since retiring from the military in 2011, he has worked as Chairman of the Anzac Centenary Advisory Board, Chairman of Airservices Australia and Chairman of the Council for the Order of Australia.

“Successive governments have relied on Sir Angus’ wisdom, judgment and character,” Mr Abbott said.

“Throughout his life, Sir Angus has put Australia first.

“He immigrated to Australia as an adult, he chose Australia and we are much the better for it.”

This year’s knighthoods follow last year’s appointments, which were the first since the system of knights and dames was reinstated by Mr Abbott.

The first dame under the changes was the former governor-general Quentin Bryce and the first knight was her replacement, Governor-General Peter Cosgrove.

Up to four knights or dames can be appointed in any year.

The British system was reintroduced in March 2014 after Gough Whitlam in 1976 won the approval of the Queen for an Australian system of honours and awards.

Before then, prominent and deserving Australians were included in the Order of the British Empire.

– with AAP