 In 1895, she was returned to the Queensland Government.With the federation of the Australian colonies, "Paluma" joined the Commonwealth Naval Forces in 1901, and in 1911 was integrated into the newly formed Royal Australian Navy along with her sister ship.During World War I, "Paluma" was employed mainly around Sydney Harbour, before being sold in 1916 to the Victorian Ports and Harbours Department who renamed her "Rip".