The 9th Division landed in Brunei Bay on 10 June 1945 with the 2/43rd Battalion landing at Labuan Island. Nine days later the battalion moved to the mainland and, on 28 June, during the capture of Beaufort, during fighting in North Borneo, the lead section of Starcevich's company came under fire from two Japanese machine-gun positions and suffered casualties. Starcevich, a Bren gunner, moved forward and assaulted each position in turn, killing five Japanese soldiers and causing the remainder of the machine guns' crews to retreat. Later that day, when the company was again held up by two machine gun positions, Starcevich adopted similar tactics and single-handedly captured both positions, killing seven members of their crews. For his actions, Starcevich was awarded the Victoria Cross. The citation for the award was published in the London Gazette on 6 November 1945, reading:
For most conspicuous gallantry and extreme devotion to duty at Beaufort, North Borneo, 28th June, 1945.
WX.11519 Private L. Starcevich was a member of the 2nd /43rd Australian Infantry Battalion during the capture of Beaufort, North Borneo.
During the approach along a thickly wooded spur, the enemy was encountered at a position where movement off the single track leading into the enemy defences was difficult and hazardous.
When the leading section came under fire from two enemy machine gun posts and suffered casualties, Private Starcevich, who was Bren gunner, moved forward and assaulted each post in turn. He rushed each post, firing his Bren gun from the hip, killed five enemy and put the remaining occupants of the posts to flight.
The advance progressed until the section came under fire from two more machine gun posts which halted the section temporarily. Private Starcevich again advanced fearlessly firing his Bren Gun from the hip and ignoring the hostile fire captured both posts singlehanded, disposing of seven enemy in this assault.
These daring efforts enabled the Company to increase the momentum of its attack and so relieve pressure on another Company which was attacking from another direction.
The outstanding gallantry of Private Starcevich in carrying out these attacks singlehanded with complete disregard of his own personal safety resulted in the decisive success of the action.