Former officer cadet Daniel McDonald has been kicked out of the army over his role in the so-called "Skype" affair.
In a statement early on Saturday Defence said the army had terminated his service following his conviction in the ACT Supreme Court.
It said his conduct was "inconsistent with the values of the Australian Army".
McDonald and fellow cadet Dylan Deblaquiere, both aged 21, were handed 12-month good behaviour bonds in the ACT court in October over their involvement in the Skype incident.
A woman known as "Kate" is suing the Department of Defence for compensation over the incident in which McDonald filmed himself having sex with her on a webcam and streamed it to fellow cadets in a nearby room.
Deblaquiere and five other cadets had viewed the proceedings via a webcam on McDonald's computer and an internet Skype connection.
McDonald and Deblaquiere were found guilty of using a carriage service in an offensive manner, with McDonald also found guilty of committing an act of indecency.
The Defence statement on Saturday said McDonald's conduct was "inconsistent with the values of the Australian Army and the standards expected of a member of the Australian Defence Force".
It said he was suspended from the Australian Defence Force Academy on June 28 this year and he was advised on September 13 of its intention to terminate his service.
"In accordance with procedural fairness and the principles of natural justice, Mr McDonald was provided an opportunity to respond to this decision.
"After considering Mr McDonald's response, the Army informed him on 23 October 2013 of its decision to proceed with the termination of his service," the Defence statement said.
It said McDonald's service was formally terminated on Friday at 11.59pm (AEDT).
Defence said it would not be providing further comment.
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