During July 1945, when the final Allied offensive of the Borneo Campaign took place as Operation Oboe Two, the Battle of Balikpapan, No. 1 TAF reached a strength of some 25,000 personnel, augmented by the B-24 Liberator heavy bomber squadrons of No. 82 Wing transferring in from North-Western Area Command. It was freed of garrison duties and had its strength reduced somewhat on 30 July, with the movement of units to the recently established No. 11 Group, which had been formed to command operations over the eastern islands of the Dutch East Indies and much of Borneo. Prior to the formation's disestablishment, No. 1 TAF units helped organise the medical treatment and repatriation of thousands of Australian prisoners-of-war. Group Captain Charles Read had taken over command from Scherger following the end of the Pacific War in August; by January 1946, No. 1 TAF numbered 1,400 personnel compared to its wartime peak of 22,000, and its remaining units were slated for imminent disbandment. No. 1 TAF itself was disbanded at Morotai on 24 July 1946.