In 1938, the Australian Commonwealth Naval Board (ACNB) identified the need for a general purpose 'local defence vessel' capable of both anti-submarine and mine-warfare duties, while easy to construct and operate.

[6] The need for locally built 'all-rounder' vessels at the start of World War II saw the "Australian Minesweepers" (designated as such to hide their anti-submarine capability, but popularly referred to as "corvettes") approved in September 1939, with 60 constructed during the course of the war: 36 ordered by the RAN, 20 (including Burnie) ordered by the British Admiralty but manned and commissioned as RAN vessels, and 4 for the Royal Indian Navy.

In June, Burnie and sister ship HMAS Goulburn were assigned to the Royal Navy's China Force, and sailed to Singapore via the east coast of Australia, arriving on 12 July.

[1] The corvette was involved in a series of actions delaying the Japanese advance through Malaya and the Netherlands East Indies, including anti-submarine patrol, demolition work, troop and civilian evacuation, and anti-aircraft engagements, both individually and in concert with other Allied ships.

[1] During this time, she was involved in the evacuation of Sumatra in mid-February 1942, and, with Bendigo, rescued survivors from the Dutch vessel Boero[note 1] on 28 February from the beach at Java Head.

[13] On the 17th the ship entered the port with HNLMS Soemba to assist in demolition of facilities covering a bridge to the wharf with her gun while a shore party worked through the night destroying ammunition, rail equipment and placing depth charges under the KPM wharf and a cargo shed as well as pouring sulphuric acid into the working parts and destroying propellers of four trucks of torpedoes before Burnie got underway and completed destruction with gunfire.

On reaching the site Bendigo picked up fifteen and Burnie twenty-nine people that were survivors of the Dutch ship Boero that had been torpedoed several days earlier.

[1] By November, she had returned to Australian waters, and during December 1945 and January 1946 was involved in several public relations activities, including a visit to her namesake town and a cruise for children in Port Phillip Bay.