The Australian military 's first major engagements of the war were against Italian forces in the Mediterranean and North Africa . During 1940 the light cruiser HMAS Sydney and five elderly destroyers ( dubbed the " Scrap Iron Flotilla " by Nazi Propaganda Minister Joseph Goebbels — a title proudly accepted by the ships ) took part in a series of operations as part of the British Mediterranean Fleet , and sank several Italian warships . The Army first saw action in January 1941 , when the 6th Division formed part of the Commonwealth forces during Operation Compass . The division assaulted and captured Bardia on 5 January and Tobruk on 22 January , with tens of thousands of Italian troops surrendering at both towns . The 6th Division took part in the pursuit of the Italian Army and captured Benghazi on 4 February . In late February it was withdrawn for service in Greece , and was replaced by the 9th Division .