The corps was formed in early 1916 following a reorganisation of the Australian Imperial Force (AIF) in Egypt, in the wake of the failed Gallipoli Campaign.

[3] On the Western Front, the individual companies supported their brigades through the early battles of Australia's involvement: Fromelles, Pozieres, Mouquet Farm, Bullecourt and Ypres.

[4] Three members of the corps received the Victoria Cross for their actions on the Western Front during World War I: Claud Castleton,[6] John Dwyer,[7] and Edgar Towner.

[8] During the interwar years, the machine gun battalions disappeared from the Australian Army's order of battle, largely due to cost-cutting measures.

The idea would be revived in the Australian Army in the late 1930s due to concerns about war breaking out in Europe, and subsequently four machine gun battalions were raised as part of the Second Australian Imperial Force – the 2/1st, 2/2nd, 2/3rd and 2/4th – for service during World War II, while several others would be formed within the Militia, either by converting motorised Light Horse units, or by raising new battalions.