He was the nation's top soldier, and has since become the federal government's Mr Fixit - the "go to" man chosen to lead the complicated investigations into the disappearance of Malaysia Airlines flight MH370 and the shooting down of MH17 over Ukraine.

Now Prime Minister Tony Abbot has named him as a knight in the Order of Australia.

Prime Minister Tony Abbott and Air Chief Marshal (retired) Angus Houston pictured in 2014. Credit:Alex Ellinghausen

Following the announcement of the Australian of the Year named on Sunday, Mr Abbott made the announcement that elevates the man who was known as Air Chief Marshal and then as Chief of Defence Forces Angus Houston to the lofty title of "Sir Angus".

Prince Philip, the Duke of Edinburgh, was also named as a knight in the Order of Australia for his contribution to the country during the Queen's 62-year reign.