Although the Australian Army received 757 M3 Lee/Grants in 1942, it only received three Sherman tanks.
These three tanks were supplied by the UK and were only used for trials purposes.
When the Australian Cruiser tank program was cancelled in 1943, after US authorities promised M4 Mediums would be available in any quantity required by Australia.
A proposal was made to replace the entire order of 775 Australian Cruiser tanks with 310 Sherman tanks; however, this proposal was not acted on.
Early in 1944 Australian Army was requested by War Office to undertake trials of Churchill and Sherman tanks in "New Guinea conditions".
Trials were conducted in the jungle terrain of New Guinea using British Churchill Mk IV, Mk V and Mk VII Infantry tanks and American Sherman M4A1 and M4A2 Medium tanks, and included armament tests involving firing 75mm and 95mm main guns on a Japanese style bunker constructed from coconut logs.
It was considered by those trials results that the Churchill was preferable to the Sherman for operations in jungle.

Australia's first Sherman, an M4A2, arrived in Australia in 1943 with a further two M4s (sometimes mis-labeled as M4A1s) arriving for tropical trials in New Guinea in 1944.
The tanks were manned by crews drawn from the Australian 4th Armoured Brigade.
The results of these trials showed that the British Churchill tank was better suited to jungle warfare's low-speed infantry support than the Sherman.
As a result, the Australian Government ordered 510 Churchills, of which 51 were delivered before the order was cancelled at the end of the war, and did not order any further Shermans.
Following the war, the three trials tanks were placed on display at Australian Army bases and one was later destroyed after being used as a tank target.
Although the Australian Army received 757 M3 Lee/Grants in 1942, it only received three Sherman tanks. These three tanks were supplied by the UK and were only used for trials purposes. When the Australian Cruiser tank program was cancelled in 1943, after US authorities promised M4 Mediums would be available in any quantity required by Australia. A proposal was made to replace the entire order of 775 Australian Cruiser tanks with 310 Sherman tanks; however, this proposal was not acted on. Early in 1944 Australian Army was requested by War Office to undertake trials of Churchill and Sherman tanks in "New Guinea conditions". Trials were conducted in the jungle terrain of New Guinea using British Churchill Mk IV, Mk V and Mk VII Infantry tanks and American Sherman M4A1 and M4A2 Medium tanks, and included armament tests involving firing 75mm and 95mm main guns on a Japanese style bunker constructed from coconut logs. It was considered by those trials results that the Churchill was preferable to the Sherman for operations in jungle. 
Australia's first Sherman, an M4A2, arrived in Australia in 1943 with a further two M4s (sometimes mis-labeled as M4A1s) arriving for tropical trials in New Guinea in 1944. The tanks were manned by crews drawn from the Australian 4th Armoured Brigade. The results of these trials showed that the British Churchill tank was better suited to jungle warfare's low-speed infantry support than the Sherman. As a result, the Australian Government ordered 510 Churchills, of which 51 were delivered before the order was cancelled at the end of the war, and did not order any further Shermans. Following the war, the three trials tanks were placed on display at Australian Army bases and one was later destroyed after being used as a tank target.
Lend-Lease Sherman tanks