Minister for Veterans' Affairs Darren Chester said the re-appointment of McMahon will "provide stability to the council as it ends the period commemorating the Anzac centenary and a century of keeping a promise to remember our veterans."
"Mr McMahon’s extensive experience in the military and corporate world ensures he is well-qualified to fill this role and will have a key role to play in honouring the memory of our nation’s military history,” Minister Chester said.
"I look forward to hearing of his involvement in the work of the council and the War Memorial in the years to come."
The council is responsible for the conduct and control of the affairs of the memorial and the policy of the memorial with respect to any matters determined by the council.
Minister Chester praised the role of the Australian War Memorial council in raising awareness of the service and sacrifice offered by our current and former serving community.
"I am pleased the Australian government will invest $500 million, as announced recently, to be able to display more of their collection and proudly tell the stories from recent years in Afghanistan, Iraq, the Solomon Islands and East Timor," Minister Chester said.
"I thank all council members for their dedication and hard work in preserving and sharing our military history."
McMahon has an extensive military background, serving in the Australian Defence Force for 24 years, which included the role of Commanding Officer of the Special Air Service Regiment. He led several deployments in Iraq, Afghanistan and Timor Leste, as well as serving in south-east Asia, Europe, Solomon Islands and Bougainville.