A former major general in the Army, Molan represented New South Wales in the Senate since 2019.
He was diagnosed with cancer in 2021.
Molan’s family released a statement, saying he died peacefully yesterday in the arms of his family.
“Followinf a sudden and rapid decline in health after Christmas, Jim died peacefully on January 16 in the arms of his family,” the statement reads.
“He was many things – a soldier, a pilot, and author, a volunteer firefighter and a Senator. Most of all, he was an adored husband, father, grandfather and brother.
“Our loss is immeasurable, but we are comforted in our memories of a full life courageously lived, devoted to family and in service of the country he lived.”
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Molan’s long military career saw him serve in East Timor and Iraq, to which he was deployed in 2004.
His honours included being made an Officer of the Order of Australia, the Distinguished Service Cross, and the US Legion of Merit.
He was appointed to fill the casual vacancy in the Senate left by the departing Arthur Sinodinos in 2019.
It followed an election campaign that year which saw Molan placed fourth on the Coalition Senate ticket for NSW.
He and his supporters subsequently urged voters to ignore the Coalition’s “how to vote” instructions and vote instead for Molan directly.
Molan was re-elected for a full six-year term in 2022 after finishing Sinodinos’ Senate stint.