Outgoing defence chief Mark Binskin says he's proud of having held "the best job in the world".
Air Chief Marshal Binskin formally handed over the role of Chief of the Defence Force to General Angus Campbell at a ceremony in Canberra on Friday.
"We are in a time of significant change and a time of significant challenge," Air Chief Marshal Binskin said.
"I know you (General Campbell) are very well placed to be able to lead the ADF over the coming years."
Air Chief Marshal Binskin said he was proud to have led a force that was respected globally and made "deep" cultural, structural, organisational and technological reform.
During the past four years, the ADF has deployed more than 27,000 men and women to 30-plus operations around the world.
The change of command parade featured Australia's Federation Guard, a didgeridoo performance, an F/A-18 Hornet fly-past and a 17-gun salute.
Air Chief Marshal Binskin has been CDF since July 2014.
Lieutenant General Angus Campbell began his appointment as the Chief of Army in May 2015 and was promoted to general before the parade.
General Campbell joined the army in 1981 and graduated from Duntroon in 1984.
In 2001, he was appointed the commanding officer of the 2nd Battalion RAR, which was deployed to East Timor.
General Campbell joined the Department of Prime Minister and Cabinet in 2005, where he headed the Office of National Security and took on the role of deputy national security adviser.
Returning to the ADF in 2010, he was appointed to the rank of major general and led the Military Strategic Commitments staff in Defence headquarters until January 2011, when he assumed command of Australian forces deployed in the Middle East area of operations.
Having served as deputy army chief from February 2012 to September 2013, he was promoted to lieutenant general to oversee Operation Sovereign Borders, the coalition government's strategy to stop people-smugglers.
General Campbell handed over the Chief of Army role to Lieutenant General Rick Burr on Monday.