HMAS Tarakan was berthed alongside Garden Island, Sydney, making good defects prior to departure for New Guinea, when an explosion occurred aft under the mess decks, resulting in the deaths of seven sailors and one dockyard tradesman. A further 12 sailors and one dockyard tradesman were injured. The ship was extensively damaged. Tarakan did not return to seagoing service and on 12 March 1954 she was sold on behalf of the United Kingdom Ministry of Transport to EA Marr & Sons Pty Ltd, of Mascot, Sydney, for breaking up.