It was later discovered that the high-hardness steel specified for the Bushmaster meant that it generally offered better protection against ballistic weapons and IEDs than the aluminium alloys used in ASLAVs and M113s.

[6] The 1991 Defence Force Structure Review identified the Australian Army's need for an Infantry Mobility Vehicle (IMV).

[7][8] The Interim Infantry Mobility Vehicle (IIMV), a fleet of unarmoured vehicles similar to the Land Rover Perentie were built and purchased from British Aerospace Australia, from November 1993, to prove the concept of infantry mobility and fill the IMV role, until the IMV entered service.

[7][8] In early 1996, Perry Engineering produced a prototype Bushmaster, based on an Irish designed Timoney Technologies MP44, including the Rockwell/Timoney independent suspension, and with US company Stewart & Stevenson components from the Family of Medium Tactical Vehicles (FMTV).

[9][10][11] Over 65% of the components by Stewart & Stevenson were from the FMTV including engine, transmission, steering, instrumentation, electrical and pneumatic systems.

[7][8] That November, ADI launched its re-engineered Bushmaster proposal changing the design and shape of the hull to withstand a greater force and associated internal and external features.

[17] In October 2016 it was announced that Australia and Indonesia would jointly develop a vehicle based on the Bushmaster for use by the Indonesian military.

[19] The Bushmaster is optimised for operations in northern Australia, and is capable of carrying up to 9 soldiers and their equipment, fuel and supplies for 3 days, depending on the type of variant.

The vehicle is fitted with air conditioning and was once planned to have a cool water drinking system, but was omitted upon production due to cost constraints.

[8][15] The fuel and hydraulic tanks of the vehicle are located outside the crew compartment, while it also has an automatic fire suppression system.

[8][24] In keeping with the vehicle's role and capabilities, the Australian Army designates Bushmaster-equipped infantry units as being motorised, and not mechanised.

In December 2006 Minister for Defence Brendan Nelson announced that the Australian Bushmaster order had been increased and over 400 vehicles would be delivered.

[36] In July 2024, the Australian government placed a A$45 million order for 15 Bushmasters to be delivered in 2026 to be used for the command and control of the new High Mobility Artillery Rocket System (HIMARS) that the Army is scheduled to receive from 2025.

[37][38] In January 2025, the Australian government placed a A$100 million order for 44 Bushmasters to be used for the command and control of a new land-based maritime missile system that the Army is to acquire.

[44] Thales developed a Single Cab Utility variant of the Bushmaster that was unsuccessfully proposed for the Land 121 Phase 3 Project.

[45][46][47][48] Thales has developed a Dual Cab Utility variant and a ISTAR (intelligence, surveillance, target acquisition and reconnaissance) Kit.

[55] In September 2007, the Army reported that the fleet would be upgraded with a protected weapon system (PWS) that is stabilised with thermal imaging, camera and laser rangefinder.

[58] The Special Operations Task Group vehicles were fitted with a weapon ring to mount a 12.7 mm heavy machine gun.

[58] In late 2012, the entire fleet was rotated, with new upgraded vehicles provided with increased blast protection and the option of adding extra external composited armour.

[61] In 2023, the ADF stated that a number of Bushmasters would be equipped with a Battle Management System for mounted command, developed by Systematic.

[66] In 2007, Thales developed a 6x6 Bushmaster and partnered with Oshkosh Truck in a failed bid for the United States Army Medium Mine Protected Vehicle (MMPV) program.

[79][80] To date, Australia's Bushmasters have been deployed on five operations: On 17 March 2010, all five Australian soldiers from the 1st Mentoring Task Force who were occupying a Bushmaster were wounded, three of them seriously, when it was hit by a roadside bomb in the Chora Valley north of the main Australian base near Tarin Kowt in Oruzgan Province during a routine vehicle patrol.

[58] In July 2006 the Dutch Government announced an urgent purchase of 25 Bushmasters to equip Royal Netherlands Army units operating in Afghanistan.

[94] Dutch special forces deployed as part of the Northern Mali conflict from April 2014 were equipped with a number of Bushmasters.

[104] Features included an increased armour package, bullbar, ECM and anti-IED suites, and a CROWS RWS fitted with an M2 .50 calibre machine gun.

[107] The Bushmaster provided all-round protection, compared to the HMT 400 with an exposed crew, that was required in built-up urban areas in Iraq.

[115][116] On 15 September 2022, ABC News reported that the Ukrainian ambassador to Australia Vasyl Myroshnychenko had made a request to the Australian government for an additional 30 Bushmasters.

[119] On 29 May 2022, the Australian Financial Review reported that there was a video confirming the destruction of one Bushmaster by Russian troops in Trypillia, Donetsk.

It is understood that those aboard escaped from two of the destroyed vehicles but the third was hit by an anti-tank weapon and the soldiers it carried were killed.

[123] President Zelensky in an address to the Lowy Institute think tank on 6 October 2022 praised the Bushmasters saying "This equipment has performed masterfully in real combat operations".