The Bathurst class minesweeper, (corvette), HMAS BENALLA, (LCDR L. N. Morrison, RANR(S)), was commissioned. BENALLA was laid down at Williamstown Naval Dockyard, VIC, on 24 March 1942, and launched on 19 December 1942. Mrs A. S. A. Drakeford, (wife of the Minister for Air and Civil Aviation), performed the launching ceremony.
The Japanese submarine I-177, sank the American Liberty ship LYDIA M CHILDS, 90 miles east of Newcastle. The ship was on her maiden voyage.