HMAS Penguin paid off for disposal. She had served as a depot ship at Garden island since commissioning into the RAN in 1913. On 9 May 1923 she was towed to Cockatoo Island and handed over to the Commonwealth Shipbuilding Board. She was transferred to the Commonwealth Shipping Board in August 1924 for final disposal. Breaking up was completed at Cockatoo Island in April 1925 and the hull sold to Mr HP Stacey of Sydney.