HMAS Murchison paid off into Reserve. Since commissioning the ship had steamed 175,712 miles. Without being again brought into seagoing service, Murchison was sold for breaking up to the Tolo Mining & Smelting Co Ltd of Hong Kong on 21 September 1961. However the vessel was resold to the Japanese firm Amakasu Sangyo Kisen Co Ltd. She remained at a Navy mooring in Sydney Harbour until 7 September 1962. During that month Murchison and her sister ship Hawkesbury (I), also purchased by the same Japanese firm, were towed out of Sydney Harbour on their way to be scrapped