Significant changes are needed to the Defence Force Discipline, including a review of the need to provide procedural fairness to people affected by an investigation, a report issued today has recommended.
Mr Smith issued the third part of the Gyles report into the 2009 HMAS Success scandal earlier today.
The report also showed that compensation payments for three senior sailors named, shamed and then left to make their own way home from Singapore in the wake of the incident are still unresolved.
More than six months have passed since the Navy was ordered to pay compensation in the second part of the Gyles Report into the ''ship of shame'' scandal.
Chief Petty Officer Jason Thomas, Petty Officer Orlando Barrett and Petty Officer Jake Thomson were humiliated aboard the ship and falsely linked to allegations of public sex acts, indecent exposure and running a sex ledger on their return to Australia.
''Defence has offered compensation to the senior sailors in accordance with the recommendation made by Mr Gyles,'' Defence Minister, Stephen Smith, said.
''This process is ongoing with Defence's position on compensation currently under consideration by the sailors and their legal representatives.
The report is also critical of equity and diversity processes within Defence and recommends they return to their roots to ''concentrate on countering disadvantage and discrimination''.
Gyles has also recommended that equity advisers and senior equity advisers not become involved in making, receiving or managing complaints.
The Government's response to the Senate, Foreign Affairs, Defence and Trade Committee's report on the HMAS Success scandal is to be released in the Senate later today.
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