Following his discharge, Newland retained the rank of captain and returned to service with the permanent military forces. Between the two world wars, he held various appointments in the army, including adjutant and quartermaster of the 8th, 49th, 52nd, 38th and 12th Battalions, as well as area officer and recruiting officer. In 1924, Newland's wife Florence died of tuberculosis. On 30 April 1925, he married Heather Vivienne Broughton in a ceremony at St Paul's Anglican Church, Bendigo; the couple would later have a daughter. Promoted to major on 1 May 1930, Newland was awarded the Meritorious Service Medal in 1935.