On 31 August 1954, Australia was paid off and marked for disposal.
She had been in service for 26 years, the longest career of a RAN warship to that date.
The ship was sold on 25 January 1955 to the British Iron & Steel Corporation for scrapping.
On 26 March, the cruiser was towed from Sydney Harbour by the Dutch-flagged tugboat Rode Zee.
The ships were later joined by two other tugs for the voyage to Barrow-in-Furness via the Suez Canal, where they arrived on 5 July.
Australia was broken up at Thos W Ward's Shipbreaking Yard at Barrow-in-Furness over the course of 1956.

One of the cruiser's 8-inch gun barrels is on display outside the Australian War Memorial.
A memorial to the ship's company, particularly those killed during World War II, was unveiled at Henley Beach, South Australia on 1 May 2011.
On 31 August 1954, Australia was paid off and marked for disposal. She had been in service for 26 years, the longest career of a RAN warship to that date. The ship was sold on 25 January 1955 to the British Iron & Steel Corporation for scrapping. On 26 March, the cruiser was towed from Sydney Harbour by the Dutch-flagged tugboat Rode Zee. The ships were later joined by two other tugs for the voyage to Barrow-in-Furness via the Suez Canal, where they arrived on 5 July. Australia was broken up at Thos W Ward's Shipbreaking Yard at Barrow-in-Furness over the course of 1956.
One of the cruiser's 8-inch gun barrels is on display outside the Australian War Memorial. A memorial to the ship's company, particularly those killed during World War II, was unveiled at Henley Beach, South Australia on 1 May 2011.
HMAS Australia (D84)