It grounded on Hebe Reef as it approached the mouth of the Tamar River and began leaking bunker fuel oil.
Underwater inspections confirmed that it had incurred major structural damage and was continuing to deteriorate.
It was towed to an approved disposal site 85 kilometres (53 mi) east of Flinders Island where it sank on 30 July.
Several beaches and islands in north-eastern Tasmania were affected and a major clean-up and wildlife rescue effort was undertaken.
[5] In 2005, a 10-year post-mortem reflection on the incident revised the figure upwards, estimating penguin fatalities at 25,000.