It currently operates as a helicopter training squadron and is based at HMAS Albatross at Nowra, New South Wales.

The Royal Navy's original 723 Naval Air Squadron arrived at Nowra in January 1945 after travelling from the United Kingdom on the troopship Athlone Castle.

723 Squadron also took delivery of the RAN's first jet aircraft, a de Havilland Vampire Mk T.34 on 18 June 1954.

[3] During the squadron's history, the battle honours "Vietnam 1967–71", "Kuwait 1991", and "East Timor 1999" have been earned.

The Bell 429 joined the Squadron in 2012 on lease from Raytheon Australia and were used for multi engine training for pilots moving onto other aircraft such as the S-70B-2 Seahawk.