After divisional headquarters moved to Rutherford, the 12th and 15th Motor Regiments joined the division around Coffs Harbour and Grafton, while the 2nd Motor Brigade moved to Dungog, tasked with the defence of Newcastle. The following month, the division's support troops also moved to a concentration area west of Newcastle. The 2nd Infantry Division took over responsibility for the Newcastle area in May, after which the headquarters of the 4th Motor Brigade was converted into the 3rd Army Tank Brigade, while the 2nd Motor Brigade moved to Taree deploying units to Kempsey and Coffs Harbour. Several other motor regiments – the 15th and 16th – were transferred to other formations at this time, while others – the 14th and 24th – were disbanded.
