It is part of the suite of defence force service awards introduced in 1982, which also included the Reserve Force Decoration (RFD, for officers of the Australian Defence Force Reserves) and the Reserve Force Medal (RFM, for non-commissioned members of the Reserve forces).

All three medals were replaced with effect 20 April 1999 with a single medal, the Defence Long Service Medal,[3][4][5] which is now awarded to all permanent and reserve members irrespective of rank.

[6] Additional service clasps are issued for each further 5 years after the initial 15 year qualifying service period.

With the introduction of the Defence Long Service Medal, the DFSM is now a closed award with only clasps to existing awards continuing to be issued.

Other Australian long service awards include: While not awarded for "long service" per se, the Australian Defence Medal is sometimes classified as a "long service medal" – it is intended to recognise all those who completed an obligation to serve their country (whether voluntarily or conscripted).