The LSM Mk.II was planned during the 1970s to replace the WW2-vintage LSM fleet and was partly designed by the British company Burness Corlett and Partners. The shallow draught vessel was powered by three diesel engines and had four ducted propellers with a rudder behind each propeller.
A helicopter pad with refuelling facilities was included, but no smaller landing craft were to be carried. A bow door for beaching was also included.
Problems began when the RAN wanted a speed of 20kt for convoy work but the Australian Army's insistence on bow doors and beaching capability reduced this to 15kt.
Eventually the project was abandoned, the Army ordering 8 LCH but only receiving the prototype
Balikpapan and the RAN eventually brought a modified Sir Lancelot-class ship as HMAS
Tobruk.