On 6 February 1956, the then Governor General, Field Marshal Sir William Slim, presented the regiment with its Guidon at a Regimental Parade held in Puckapunyal. Also in 1956 the regiment was equipped with the Centurion armoured recovery vehicle, allowing the retirement of the Churchill recovery vehicle. Following the expansion of the Royal Australian Armoured Corps (RAAC) in 1960, A Squadron was disbanded, reducing the regiment to two squadrons, and the majority of its personnel formed regular squadrons in the 4th/19th Prince of Wales' Light Horse and the 2nd/14th Light Horse (Queensland Mounted Infantry), which were predominantly CMF formations. These squadrons subsequently became part of the 1st Cavalry Regiment, which was later redesignated the 2nd Cavalry Regiment and in turn provided the nucleus for the newly raised 3rd Cavalry Regiment.