(1) The Royal Australian Navy (or RAN ) consists of:
(a) the Chief of Navy; and
(b) the Permanent Navy; and
(c) the Naval Reserve.
(2) The Permanent Navy consists of:
(a) officers appointed to, and sailors enlisted in, the Permanent Navy; and
(b) members of the Defence Force transferred to the Permanent Navy.
(3) The Naval Reserve consists of:
(a) officers appointed to, and sailors enlisted in, the Naval Reserve; and
(b) members of the Defence Force transferred to the Naval Reserve.