Once floated, Karrabee was laid up and did not re-enter service.
The remaining wooden ferries on Sydney Harbour - Lady Edeline, Kameruka, and Karingal - were taken out of service following the Karrabee’s sinking and the commissioning of the first of the First Fleet catarmaran ferries in 1984.

In 1985, another old wooden ferry, Kameruka was sold for use in a proposed fun park at Lansvale and Karrabee was included in the deal free of charge.
However, Kameruka sank at the mooring and was broken up by mechanical grab.
In May 1986, Karrabee was sold and towed to Gosford for conversion to a floating restaurant.
The business did well for a number of years, but the boat's condition deteriorated and in 2003 it settled into the mud at the wharf.
In November 2005, it was broken up in place and there is some evidence that her upper structure was relocated to Kulnura.
At 92 years of age, Karrabee was the oldest wooden-hulled K-class ferry (Kanangra is steel-hulled), and was among the longest-lived of all Sydney Harbour ferries.

Having been pulled out of service in 1984/85 with the other wooden-hulled ferries after Karrabee's sinking, Karginal was sold to new owners in Melbourne but sank en route in Bass Strait.
Once floated, Karrabee was laid up and did not re-enter service. The remaining wooden ferries on Sydney Harbour - Lady Edeline, Kameruka, and Karingal - were taken out of service following the Karrabee’s sinking and the commissioning of the first of the First Fleet catarmaran ferries in 1984.
In 1985, another old wooden ferry, Kameruka was sold for use in a proposed fun park at Lansvale and Karrabee was included in the deal free of charge. However, Kameruka sank at the mooring and was broken up by mechanical grab. In May 1986, Karrabee was sold and towed to Gosford for conversion to a floating restaurant. The business did well for a number of years, but the boat's condition deteriorated and in 2003 it settled into the mud at the wharf. In November 2005, it was broken up in place and there is some evidence that her upper structure was relocated to Kulnura. At 92 years of age, Karrabee was the oldest wooden-hulled K-class ferry (Kanangra is steel-hulled), and was among the longest-lived of all Sydney Harbour ferries.
Having been pulled out of service in 1984/85 with the other wooden-hulled ferries after Karrabee's sinking, Karginal was sold to new owners in Melbourne but sank en route in Bass Strait.
Karingal and Karrabee