After originally declaring for the 2006 NBA draft, Newley later withdrew his name and returned to the Crocodiles for the 2006–07 NBL season, where went on to earn All-NBL second team honors. He also participated in the 2006–07 All-Star game held on 25 November 2006, in Adelaide. Newley, alongside Larry Abney, led the Crocodiles to the NBL playoffs, but they were beaten in the quarter-finals by the Sydney Kings. In 102 games played over three seasons for the Crocodiles, Newley averaged 19.1 points, 4.5 rebounds and 3.1 assists per game.