The Minister for Defence, Senator George Pearce, appointed McCay to the newly created post of Inspector General of the AIF on 29 November 1915, with the local rank of major general. McCay was involved in recruiting campaigns, and inspected AIF units and reported on their training and equipment. He proposed a new training regime, with a national syllabus that increased the number of hours per week of training and the duration of training to twelve weeks. This led to strikes at the camps at Casula and Liverpool. Rioting soldiers clashed with police at Circular Quay and at Central Station striking soldiers were shot and one killed by soldiers sent to return them to Liverpool. As a result, new liquor laws were introduced, including six o'clock closing.