Construction began at the TGR's Launceston Railway Workshops in 1961, and three of the planned eight were completed relatively quickly.

[3] In line with standard TGR practice of the time, they were fitted with hook-and-link couplers and vacuum train brakes (air on locomotive).

With a light tractive weight of only 58 tonnes, a reasonably powerful engine of 825 horsepower (615 kW) and a fairly basic bogie design, gaining traction on long uphill grades was found to be difficult.

In March 1978, the Y class were included in the transfer of the Tasmanian Government Railways to Australian National.

In the late 1970s and early 1980s, all members of the Y class were retrofitted with stronger automatic couplers, which had by then become standard equipment.

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