It had a robust and simple design, but "never gained popularity with those using it"[3] and in Vietnam it was later largely replaced by the American 5.56mm M16A1 rifle.

The F1 was retired in the early 1990s and replaced by the F88C Austeyr, an Australian-built version of the Steyr AUG rifle.

The pistol grip with internal parts came from the production line of the SLR L1A1 rifle, at the Lithgow factory.

Although the F1 retained many of the Owen's features it did not continue to have a separate compartment inside the receiver, isolating the small-diameter bolt from its retracting handle, so it was no longer as resistant to jamming if dropped in mud.

That being said, the non-reciprocating charging handle blocks off the slot in the side of the receiver to prevent the ingress of dirt.