(1) Where:
(a) an officer who is a member of the Permanent Navy, the Regular Army or the Permanent Air Force applies to the Chief of the Defence Force to be transferred to the appropriate Reserve; and
(b) he satisfies the Chief of the Defence Force that he intends, if he is so transferred, to become a candidate for election as a member of a House of the Parliament of Australia or of a State or of the Legislative Assembly of the Northern Territory or a prescribed legislative or advisory body for another Territory at an election specified by him in the application;
the Chief of the Defence Force may transfer him to the appropriate Reserve.