The Betsey Island graveyard, west of Little Betsey Island at the mouth of the Derwent, is Hobart's ships' graveyard: from the 1930s to the 1980s obsolete vessels, barges and sections of the old floating bridge were towed here and scuttled in about 20-34 m. The Marine Life Network guide calls it a huge concentration of wreck dives very close to Hobart, with a pebble-and-mud bottom that stirs up easily, poor visibility after bad weather or decaying Storm Bay swell, and massive yellow and white jewel anemones and, at times, hordes of school fish on the wrecks. The Musgrave is the deepest of the graveyard wrecks, lying at 34 m slightly west of the Leura.

Built in Glasgow in 1883 as the Fiona, she was later renamed Musgrave and was scuttled at Betsey Island in 1930. The guide gives her tonnage as 817 and length as 211 ft (64 m). She is heavily broken up and shows only a weak trace on a sounder, making her hard to find, but the stern section survives, encrusted in jewel anemones and with a prominent steering quadrant.

The depth, cold and low light make this a more serious dive than the other graveyard wrecks: at 34 m on air bottom time is short, narcosis is noticeable in dark water, and a torch is essential. The reward is an old steamer's stern glowing with anemones and the satisfaction of finding a rarely visited wreck. Fish life is similar to the Leura, with small schooling fish and leatherjackets around the structure.

Divers should be Deep-certified and experienced in low-visibility conditions, and use a shot line for descent and ascent. Nitrox is not helpful at this depth for bottom time beyond small gains; a conservative air or EAN28 plan with a long safety stop is typical. As a wreck scuttled more than 75 years ago, she is protected historic heritage.

South Arm is about 35 km (40 minutes) south-east of Hobart: cross the Tasman Bridge, follow the South Arm Highway (B33) through Rokeby and Lauderdale to South Arm. The main boat ramp is at South Arm (Blessington Street/Harbour area) with trailer parking and toilets; Lauderdale (Doran's Road) is an alternative ramp further north. From South Arm the Betsey Island graveyard lies about 5-6 km south-east across the mouth of the Derwent, west of Little Betsey Island, roughly 15-20 minutes by boat.

The Marine Life Network guide recommends an echo sounder to locate the individual wrecks, which are low on the bottom; there are no public moorings, so anchor carefully in the pebble-mud bottom off the wreck and leave a boat attendant.

Betsey Island lies at the mouth of the Derwent where it meets Storm Bay, so decaying southerly swell and strong southerly or south-westerly winds make the ride rough and stir up the pebble-and-mud bottom. The Marine Life Network notes the graveyard is not renowned for visibility and recommends calm, dry weather and an ebb tide, when clearer water sits over the wrecks. After Derwent floods the water can be very dark.

Northerly and light westerly winds give the best conditions; late summer and autumn are most reliable. Expect 3-8 m visibility at best, often less.

Shot the stern section, descend directly to the steering quadrant at 34 m, spend a short planned bottom time around the stern, and ascend on the shot with a generous safety stop.

Deep Specialty recommended; shot line essential; plan conservative no-deco or light deco; redundant torches.

No scheduled operator trips; Hobart clubs (Tasmanian Scuba Diving Club and others) and private boats from South Arm and Lauderdale. The Dive Shop Hobart and Go Dive Tasmania can advise.