Leaders, dignitaries and relatives and friends of all the 38 Australians attended the ceremony in Canberra and paid their tribute to the victims of the tragedy.
"In the worst of times, you have displayed the strength of giants and the grace of angels, and I am humbled by your example," Prime Minister Tony Abbott said at the memorial, held inside the Great Hall of Parliament House.
Abbott also unveiled a plaque with the names of the Australians killed.
"The plaque is set in soil that one of our police officers brought back from Ukraine. He knew that the place where MH17 came to rest was sacred and that a piece of it should come back to Australia," Abbott said, adding "it was a humane and decent thing for him to know and do."
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"No hate in the world will ever be as strong as the love we have for Mo, for Evie, for Otis, no hate in the world will ever be as strong as the love we have for granddad Nick," the statement read.
Australia, Belgium, Malaysia, the Netherlands and Ukraine undertaking the joint criminal investigation have asked the UN Security Council to set up an international criminal tribunal to prosecute those responsible for downing the Malaysia Airlines flight MH17 over conflict-ridden Ukraine on July 17 last year.
"Justice must be delivered for the 298 innocent people who lost their lives," British Foreign Secretary Philip Hammond said in a statement. "That requires an international tribunal, backed by a resolution binding all UN member states, to prosecute those responsible."
The Boeing 777 - presumed to have been hit by a missile during fighting between Ukrainian government forces and pro- Russian separatists, killing all 298 passengers and crew on board - was en route to Kuala Lumpur from Amsterdam.