HMAS Torrens was paid off into reserve. The destroyer was relocated to Flinders Naval Depot in July 1924, and although not recommissioned, was used for the training of naval reservists. Torrens was later transferred to Port Adelaide, where she was again used for training until March 1925. The ship returned to Sydney on 11 May, with occasional use for reservist training. During the general reduction in naval activity imposed by lack of finance during the Great Depression, it was decided to scrap Torrens and her five sister ships. On 24 November 1930, after being stripped of useful materials, Torrens was towed outside Sydney Heads by the tug Heroic, and was used for gunnery target practice. The destroyer withstood considerable shelling before being scuttled by a charge of gelignite.
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