The Federal Government has ordered a review of the nation's organ donation system, saying about $250 million in recent investment has not led to the intended rise in transplant numbers.

In 2008, the Rudd government set a goal for Australia to become a world leader in the field.

The Government said the number of people whose organs were donated when they died was 12.1 per million people in 2008.

That figure only rose to 16.1 per million last year.

"Both Coalition and Labor federal governments have made a significant investment in improving Australia's organ transplant rate," the Assistant Health Minister Fiona Nash said.

"However, organ transplant rates have not increased as quickly as intended.

"We're seeing relatively slow progress over the last six years. I have had some concerns and thought we needed to have a look at this."

More than 1,100 people received an organ nationally last year — far fewer than the number of Australians needing a transplant.

The Ernst and Young review of the donation and transplantation program will start next month and focus on the Organ and Tissue Authority.

Families vetoing donation decisions

The power that families have to veto their dead relative's wishes will also come under scrutiny.

The Government said most Australians registered to donate their organs, but this wish was overturned on 37 per cent of occasions.

"I'm concerned that when people have made the decision to donate ... [families] make the decision that is against the wishes of the person that has decided to donate," Senator Nash said, acknowledging the question comes at a difficult time for families.

"We need to look at that circumstance, look at why that's occurring, and that will be part of the review."