"The New Zealand Fire Service is in great shape for the next chapter in its history and the transition to Fire and Emergency New Zealand (FENZ) is in good hands," he said.
New Zealand Fire Service Commission board chair Paul Swain said Mr Baxter had spearheaded the drive for change in New Zealand's urban and rural fire services for many years.
"He has made a huge contribution to this country's fire services in his time."
Mr Baxter said he was humbled by the QSO honour.
"But it's only through the work of so many others as well," he said.
"It is recognition for all."
Mr Baxter, who attended Tamatea High School, started out as a volunteer for what was then the Napier Fire Brigade in 1981 before becoming a career firefighter in 1986.
He also did time as a firefighter with the New Zealand Air Force.
In the Bay, his rise through the ranks saw him promoted to Chief Fire Officer for the Napier district in 1998 and in 2007 he was appointed Eastern Fire Region manager and oversaw the service requirements from Hicks Bay down to Eketahuna.
After an intensive and lengthy selection process for the National Commander position Mr Baxter was appointed by the Fire Service Commission in October 2011 and officially took up the role in January 2012.
During his fire service career he spearheaded search and rescue operations during the Christchurch earthquake and also completed a four-year executive fire officer programme at the United States Fire Academy.
Mr Baxter was also part of the Kiwi firefighting crew sent to assist in tackling the Sydney bush fires during December 2001 and January 2002 - his first-hand first link with New South Wales where he is now based.
He said he always embraced a challenge, and with his five-year contract wrapping up with his national commander role decided to have a crack at the New South Wales position.
"We have close contact with the New Zealand service and there are a lot of Kiwi firefighters over here."
He said he never thought about gaining so high a position when he started out, but uses it in his talks with new recruits.
"It was the encouragement of others - and we encourage the new ones coming aboard today."