A report from an inquiry into sexual misconduct aboard HMAS Success raises serious concerns about navy culture, defence force chief Angus Houston says.
Air Chief Marshal Houston on Tuesday said he had received the 400-page first part of the HMAS Success Commission of Inquiry's report on an alleged sex ring operating onboard the ship during March to May 2009 when it was deployed to the Philippines, China, Hong Kong and Singapore.
"On my very quick review, it is clear to me that the report raises very serious issues," he said in a statement.
Those issues included questions about individual accountability and broader cultural and institutional issues and concerns.
"It is going to take time to analyse and understand the detail of the findings and conclusions."
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Air Chief Marshal Houston said he expected to receive the rest of the report by the middle of the year.
A copy of part one of the report was handed to Defence Minister Stephen Smith over the weekend.
Mr Smith told ABC Radio it raised "very concerning" issues and would be released publicly in the next few weeks.
Problems with discipline and "so-called tribal culture" had been raised by the inquiry, the defence minister said.
"To be blunt about it, (the report) doesn't make good reading, either about the suggestions of individual conduct, or the suggestions of discipline, or the suggestions of a particular type of culture," he said.
"The (defence) command structure down has zero tolerance for such unacceptable behaviour."
Mr Smith said forthcoming parts of the report would look at ways defence could conduct its investigations better.
Humans weren't perfect but it was the job of defence leadership to make sure bad behaviour didn't become institutional, he said.
Mr Smith said there were many examples of outstanding actions from within the navy too.
"It's not all bad news ... we also get regular examples of very good work and great heroism whether it's the Christmas Island rescue or the Queensland and Victoria floods."
The inquiry into conduct aboard HMAS Success heard reports of an entrenched culture of disrespect for women aboard the ship, with a group of male sailors putting dollar values or "bounties" on female crew.
Known as The Ledger, the alleged sex ring involved members detailing their conquests on paper and placing dollar values on each female sailor they had sex with during an overseas deployment in 2009.
The inquiry, overseen by retired judge Roger Gyles, was launched by the defence department after an initial investigation was deemed to be biased.
