Defence is investigating an incident in Afghanistan in which a special forces soldier allegedly cut the hands off dead insurgents to take their fingerprints.
The ABC reports that a Special Air Service Regiment corporal could face charges for removing right hands from the bodies of three dead Taliban insurgents in April last year.
Defence says it won't comment further until the investigation is complete.
"Defence continues to investigate an incident of potential misconduct during a combined operation between Afghan National Security Forces and Australia's Special Operations Task Group in Zabul province, Afghanistan on April 28, 2013," a defence spokesman said.
The ABC report said the soldiers were hunting an insurgent bomb maker codenamed Rapier.
Soldiers are required to collect biometric information such as fingerprints from dead insurgents so they can be identified.
The ABC reported the corporal said he was acting on the advice of an officer from the Australian Defence Force Investigation Service who said it was acceptable to remove hands of dead insurgents so fingerprints could be taken back at base.
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