An Aboriginal man whose father served in both world wars is suing the Victorian Government for millions of dollars in compensation, alleging his father's historical request for a soldier settlement block was knocked back on the grounds of race.

Key points: After WWI and II, 37,000 returned soldiers were granted rural blocks of land

After WWI and II, 37,000 returned soldiers were granted rural blocks of land Aboriginal soldier Herbert Lovett served in both wars and was refused land

Aboriginal soldier Herbert Lovett served in both wars and was refused land His son Johnny Lovett is suing the Victorian Government for compensation

Johnny Lovett, 69, said it was a question of justice for his deceased father.

"It's a little bit ironic that Australia was crying out to reward the returned soldiers, from 'a grateful country', but when he came home he was back to being black," he said.

In World War I Mr Lovett's father Herbert was a machine gunner on the Western Front. His three uncles also served.

Twenty years later the four brothers re-enlisted for World War II and served from home.

After the war, 37,000 veterans were granted rural land packages known as soldier settlement blocks.

But when Herbert Lovett applied for his in September 1945 he was denied.

Instead, his family's traditional land in western Victoria was cut up and given away to white soldiers.

Mr Lovett feels the pain of his father's loss keenly.

"Although I'd never heard him be resentful to white soldiers getting the land, it's just that ... the land that they got was his traditional land," he said.

'It was a form of prejudice'

Herbert Lovett, left, and his three brothers served in both world wars. ( Supplied: Johnny Lovett )

Dr John Connor, a military historian with the University of New South Wales, said all applications by Aboriginal veterans for land, apart from two, were knocked back.

"It's a form of racism. It was a form of prejudice against Aboriginal soldiers," Dr Connor said.

"There were almost 700 Aboriginal soldiers who served overseas in the First World War, and all of them would have been eligible to apply for a soldier settlement grant."

For years Mr Lovett has combed military archives and lobbied state and federal ministers to no avail.

In 2012 he unsuccessfully sought compensation from the Victorian Government.

Now, with pro bono legal support, he is taking them to court.

His Adelaide-based lawyer Tim Campbell said Mr Lovett had a strong case but acknowledged it would be a tough fight.

"It will be very hard to succeed," he said.

"Governments are reluctant to acknowledge such claims because there might be many more of them."

In 2013, the Lovetts were added to Victoria's Indigenous Honour Roll.

Victoria's Minister for Aboriginal Affairs Natalie Hutchins was unavailable for an interview, but a statement from her office said her department would meet with Mr Lovett to discuss his claim.

Mr Lovett said this could be his last chance.

"This could be the last roll of the dice for me. You can't stay young forever, and I'm getting older, and I'm getting tired," he said.