[1] He retired from the army in 1883 with the rank of lieutenant colonel and returned to Australia, securing a plot of farm land around Heidelberg, Victoria.
He subsequently formed the Victorian Mounted Rifles, an early light horse unit that helped establish the concept within the Australian military, which was raised from volunteers recruited from men based in rural Victoria.
In establishing his new unit, Price obtained permission to dress them in khaki, instead of the red or blue uniforms that had been common at the time.
[1] During a civil disturbance in Melbourne in 1890 when maritime workers went on strike, Price's unit was called out to aid civilian police.
The orders that he gave to his men to fire on the strikers if necessary later led to him being criticised by Premier Duncan Gillies and appearing before a court of inquiry.
[1] One of his sons died on active service with the Royal Navy during World War I, while another reached the rank of brigadier in the British Army.