Australia left Portsmouth for her namesake country on 3 August 1928 after completing sea trials.
During the voyage, the cruiser visited Canada, the United States of America, several Pacific islands, and New Zealand before she reached Sydney on 23 October.
Following the start of the Great Depression, the RAN fleet was downscaled in 1930 to three active ships (Australia, Canberra, and seaplane carrier Albatross) while one of the S-class destroyers would remain active at a time, with a reduced ship's company.
In 1932, Australia cruised to the Pacific islands.
In 1933, she visited New Zealand.

On 10 December 1934, Australia was sent to the United Kingdom on exchange duty, with the Duke of Gloucester, who had visited Victoria for the state's centenary of foundation the month previous, aboard.
The cruiser reached Portsmouth on 28 March 1935, and was assigned to the Mediterranean Fleet.
Australia returned to England from 21 June to 12 September to represent Australia at King George V's Silver Jubilee Naval Review at Spithead.
Following the outbreak of the Abyssinian crisis, Australia began to train for a potential war.
Australia's initial role in any British assault on the Italian Navy was to cover the withdrawal of the aircraft carrier HMS Glorious after an air attack on the base at Taranto.
The crisis eased before the need for British involvement occurred.
Australia remained in the Mediterranean until 14 July 1936, then visited Gallipoli in company with the new light cruiser HMAS Sydney, before the two ships sailed for Australia.
They arrived in Sydney on 11 August.
During the cruiser's time on exchange, the British cruiser HMS Sussex operated with the RAN.

After returning, Australia spent the remainder of 1936 in the vicinity of Sydney and Jervis Bay, excluding a visit to Melbourne in November.
The warship sailed to New Zealand in April 1937, then in July departed on a three-month northern cruise, with visits to ports in Queensland, New Guinea, and New Britain.
Australia repeated her November visit to Melbourne, and cruised to Hobart in February 1938, before being placed in reserve on 24 April 1938.
She underwent a modernisation refit at Cockatoo Island Dockyard, during which her single 4-inch guns were replaced with twin mountings, belt armour measuring up to 4.5 inches (110 mm) thick was fitted over the machinery spaces, and handling arrangements for the ship's aircraft and boats were improved.
Although the modernisation was scheduled for completion in March 1939, inconsistencies between Australia's construction and the supplied drawings caused delays.
The cruiser was recommissioned on 28 August, but did not leave the dockyard until 28 September.
Australia left Portsmouth for her namesake country on 3 August 1928 after completing sea trials. During the voyage, the cruiser visited Canada, the United States of America, several Pacific islands, and New Zealand before she reached Sydney on 23 October. Following the start of the Great Depression, the RAN fleet was downscaled in 1930 to three active ships (Australia, Canberra, and seaplane carrier Albatross) while one of the S-class destroyers would remain active at a time, with a reduced ship's company. In 1932, Australia cruised to the Pacific islands. In 1933, she visited New Zealand.
On 10 December 1934, Australia was sent to the United Kingdom on exchange duty, with the Duke of Gloucester, who had visited Victoria for the state's centenary of foundation the month previous, aboard. The cruiser reached Portsmouth on 28 March 1935, and was assigned to the Mediterranean Fleet. Australia returned to England from 21 June to 12 September to represent Australia at King George V's Silver Jubilee Naval Review at Spithead. Following the outbreak of the Abyssinian crisis, Australia began to train for a potential war. Australia's initial role in any British assault on the Italian Navy was to cover the withdrawal of the aircraft carrier HMS Glorious after an air attack on the base at Taranto. The crisis eased before the need for British involvement occurred. Australia remained in the Mediterranean until 14 July 1936, then visited Gallipoli in company with the new light cruiser HMAS Sydney, before the two ships sailed for Australia. They arrived in Sydney on 11 August. During the cruiser's time on exchange, the British cruiser HMS Sussex operated with the RAN.
After returning, Australia spent the remainder of 1936 in the vicinity of Sydney and Jervis Bay, excluding a visit to Melbourne in November. The warship sailed to New Zealand in April 1937, then in July departed on a three-month northern cruise, with visits to ports in Queensland, New Guinea, and New Britain. Australia repeated her November visit to Melbourne, and cruised to Hobart in February 1938, before being placed in reserve on 24 April 1938. She underwent a modernisation refit at Cockatoo Island Dockyard, during which her single 4-inch guns were replaced with twin mountings, belt armour measuring up to 4.5 inches (110 mm) thick was fitted over the machinery spaces, and handling arrangements for the ship's aircraft and boats were improved. Although the modernisation was scheduled for completion in March 1939, inconsistencies between Australia's construction and the supplied drawings caused delays. The cruiser was recommissioned on 28 August, but did not leave the dockyard until 28 September.
HMAS Australia (D84)