HMAS Hobart paid off. From 1953 to 1956 Hobart underwent an extensive refit and modernisation at Newcastle State Dockyard to convert her to a training ship, but was not again brought into seagoing service. On 5 February 1960 it was officially announced that Hobart had been added to the list of obsolete RAN ships for sale as scrap. On 22 February 1962 Hobart was sold for breaking up to the Japanese firm of Mitsui & Co (Aust) Pty Ltd for £186,886, comprising £170,876 for the ship and £16,010 for spares. The ship left Sydney under tow on 3 March 1962 and arrived at Miyachi Shipyard, Saki, Osaka, on 2 April 1962.