The soldiers were plucked to safety in a dramatic rescue after the Army MRH-90 Taipan multi-role helicopter ditched into the water near Jervis Bay just after 9pm on Wednesday.
Defence says two crew members sustained minor injuries.
"All 10 Australian Defence Force personnel on board the aircraft have been recovered and accounted for and are being assessed by medical personnel at HMAS Creswell, south of Nowra, NSW," a Defence statement said.
Defence Minister Richard Marles says the helicopter has been recovered and the model will be grounded until an investigation is completed.
"The critical question is why did the engine stop," he told Nine's Today show on Thursday.
"All the crew are being looked after. Their family were notified again in a very prompt way, so everyone knew that everyone onboard was safe."
The minister praised the skill of the pilot in manoeuvring the chopper to ensure the safety of all on board.
"It is an incredible act on the part of the crew in managing to get the helicopter down in a manner where pretty well everyone's able to walk away," Mr Marles said.
Chief of Army, Lieutenant General Simon Stuart, AO, DSC, thanked emergency responders for their quick action.
"Tonight quick responses from ADF personnel and emergency services and well-drilled teams prevented a potential tragedy," Lt Gen Stuart said.
"We will conduct a thorough investigation into this incident to determine the cause and ensure the platform remains safe to operate."
Defence has temporarily paused the training activity and will ground the MRH-90 Taipan fleet while the cause of the incident is investigated.
The incident site is being contained by Australian Federal Police and port services personnel.
