HMAS AUSTRALIA (II) was paid off having steamed 477,301 miles in the period since August 1939. She was sold as scrap to British Iron and Steel Corporation (Salvage) Ltd on 25 January 1955. Australia (II) was towed from Sydney by the Dutch tug Rode Zee on 26 March 1955 and was broken up at the Thomas Ward Shipbreaking Yard at Barrow-in-Furness, England, between 1955 and 1957.