The battalion undertook training on the Atherton Tablelands for the next year, before taking part in one of the final Australian campaigns of the war when they landed on Labuan Island. After taking part in the initial landings on 10 June, they advanced north coming up against stiff Japanese resistance around an area called the "Pocket", which was eventually cleared on 21 June. The battalion then re-embarked and was landed to the north of Brunei Bay, and advanced towards Beaufort, where they played a support role during the 24th Brigade's attack on Beaufort on 26–28 June, before helping to secure the eastern approaches to the vital rail junction through patrol actions towards Lumadan. The battalion was still in the Beaufort area when the war ended in August. Following this it undertook garrison duties around Jesselton; the battalion's strength dwindled slowly as personnel were returned to Australia for demobilisation or were transferred to other units for subsequent service. The battalion was finally disbanded in January 1946.