60 Squadron was formed at Wagga Wagga, New South Wales, on 1 January 1942 as part of Australia's response to the rapid Japanese advance during the first month of the Pacific War and the perceived threat of invasion.

[3] It comprised 179 personnel and three flights of CAC Wirraway aircraft drawn from No.

It practiced formation flying, dive bombing and air-to-ground gunnery as well as conducting air defence exercises with other units based at Wagga Wagga.

60 Squadron was disbanded on 3 April 1942 as its aircraft and personnel were needed by the RAAF's training units.

[4] The squadron's commander throughout its existence, Blake Pelly, was promoted to the rank of acting group captain in 1944 and represented the Electoral district of Wollondilly in the New South Wales Legislative Assembly between 1950 and 1957.