As locals considered how to return her to the Brisbane River, another major flood two weeks later refloated the gunboat, and she was pulled clear without any significant damage.
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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.
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Over the next eight years, Paluma conducted survey work on the Great Barrier Reef for the Admiralty.