During the 1960s the Government Aircraft Factories at Fishermens Bend, VIC, began designing a small utility transport intended to provide a continuing production activity after completion of the GAMD Dassault Mirage IIIO fighter programme and, to meet civil and military needs.

In March 1948, following a series of meetings between members of the British Ministry of Supply and the Australian Department of Supply and Development, a specification was issued to cover the design and manufacture of a small high-speed pilotless aircraft for use in the guided weapon development program.