Australia is the only megadiversity nation which is not, in terms of economic development, part of the global south. This paper describes the major features of terrestial biodiversity in Australia, and the record of the last two hundred years in regard to biodiversity losses. Possible causes of such losses are discussed. Native forests are used to describe some current problems and controversies. The situation in regard to conservation areas, policy, institutions and research is reviewed. The paper concludes by considering future prospects and the lessons that can be learned from Australian experience to date. On current trends it appears that significant biodiversity loss will continue into the future. Prevention of this would require extensions of the reserve system and changes to off-reserve land-management practices, as well as increased research efforts directed at understanding more fully the proximate and underlying sources of biodiversity losses.