From next year, the Army Personnel Support Unit (APSU) will focus on the delivery of strategic welfare support.
It will hand over pay and administration to Pay and Administrative Conditions - NSW (PAC NSW) by December.
Remaining in eight major regions around Australia, APSU detachments will provide welfare support and training, while continuing to provide command and control of members on long-term schooling and long forms of leave (including leave without pay, long service leave and maternity leave).
The APSU will also continue providing member support coordinators to support wounded, injured and ill individuals and their families.
Commanding Officer APSU Lieutenant Colonel Melissa Joy said with a presence in most major cities across the country, the unit was well positioned to support commanders to manage individual welfare.
More than 60 Army Command support clerks will be posted out of APSU to fill clerical vacancies as a result of the re-role.
Deputy Chief of Army Major General Chris Smith said APSU's re-role was part of Army's response to the Royal Commission on Defence and Veteran Suicide, addressing the need to reinvest the Army's command support clerks back into units where they were most needed.
"Command support clerks are essential for good command. We are putting our clerks where they can best support the troops," Major General Smith said.
Lieutenant Colonel Joy recognised more than a decade of support from the APSU.
"Much of APSU's role over the past 13 years has occurred behind the scenes to ensure Army's officers and soldiers have been paid and administered correctly," she said.
"It has been thankless work. However, those people who have been posted in APSU should be extremely proud of the impact they have had."
Lieutenant Colonel Joy said she did not anticipate any interruptions to soldiers' administration during the transition.