In November 2016, the museum closed after its freight company collapsed with more than $700,000 of debt, and the ACT Division of the ARHS was placed into liquidation.

Since its establishment in 1967 and for the following 49 years, the ARHS ACT Division had the aim of preserving railway history, particularly that of Canberra and the southern districts of New South Wales, for the enjoyment and enlightenment of present and future generations.

[2][3][4] In 2007, the Australian Capital Territory Legislative Assembly formally recognised the importance of rail heritage to the ACT and the significant contribution made by the Canberra Railway Museum.

[6] In November 2016, the museum was suddenly closed after Espee, which had been started up to subsidise popular but expensive heritage train trips, collapsed with more than $700,000 of debt.

[3] In July 2017, in the face of protests from heritage conservationists and Canberra citizens, it was announced that the museum's historic collection would go to auction on 2 August.

[11] Following the vandalism and theft, some Canberra residents and railway enthusiasts decided "to do something to try and salvage some future for heritage rail in the ACT”.

Work, Health and Safety has been a key part of this focus, with both the broad policy and more detailed site procedures now in place".

Former NSWGR diesel-electric locomotive 4403, which had been restored to operational condition at Junee, hauled tour trains, including lengthy trips, until the ARHS ACT Division went into liquidation.

Diesel-electric locomotive D25 (400 hp Bo-Bo), formerly owned by Australian Iron & Steel, was the yard shunter at the Canberra Railway Museum.