What army/unit am I?

Yes that would be RAR, M16's were carried by officers, scouts, section commanders (squad leaders) and signallers.
SAS wouldn't be manning a post like that in all likelyhood.
 
What is the nickname given by commonwealth forces to the machine gun in this picture?
 
Well, the following fielded the Honest John: Belgium, Canada, France, Greece, Italy, the Netherlands, Turkey, the UK, the USA and West Germany.

I'll go with Canada, for some reason.
 
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