More than 2300 women have joined the case against the Commonwealth, which is open to women subjected to sexual violence, harassment or discrimination while serving in the Australian military between November 12, 2003 and May 25, 2025.
Concerns had been raised army members could not join the suit due to the four applicants of the class action being in the air force and navy.
But defence force chief Admiral David Johnston said he anticipated women from all three services would join the legal action.
"I've made it very clear ... we expect that women are able to exercise their lawful rights," he told a parliamentary hearing on Wednesday.
"I've made statements similarly, that participation, if that is what women choose to do in the class action, is not a test of their loyalty to the ADF.Â
"Women are a critical part of the defence capability. I do expect them to be able to exercise that right."
Joshua Aylward, the lawyer leading the class action, welcomed the declaration that women in the army could join the class action and said the legal action sought justice for all women in the ADF.
Mr Aylward said the Commonwealth had been trying to remove army claims from the class action.
"It is certainly not what has been said in multiple correspondences from Commonwealth lawyers over the last two years," he said.
"We will be seeking clarification from the Commonwealth lawyers that this is in fact their position because it hasn't been to date."
The case returns to the Federal Court in Sydney on Monday.
The Commonwealth is seeking to remove claims from the class action that are alleged to have occurred overseas, arguing the Sex Discrimination Act does not apply abroad.
Earlier, Mr Aylward said if the government and defence leadership were serious about accountability, they should drop their bid to have overseas claims excluded.
"In reality, they are trying to cut them off at the knees," he said.
"If they want to continue being two-faced and say one thing at the highest levels of government, but then turn up in court and say something completely different, that's their prerogative."
Giving evidence at the defence hearing, chief counsel Francesca Rush said there was "no application" to remove overseas claims, but it was a question of existing law whether the Sex Discrimination Act would have extra-territorial effect.
A standalone inquiry into military sexual violence is expected to get under way in mid-2026 after the Royal Commission into Defence and Veteran Suicide found the issue "systemic".
Donna Manton is a survivor of military sexual violence who chairs the Athena Project, a group supporting and advocating for victim-survivors.
She said it was galling that as Veterans' Affairs Minister Matt Keogh addressed the National Press Club in 2025 to announce the sexual violence inquiry, the government was in court trying to limit who could join the class action.
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