All known species of Microvelia occurring in Australia, including Tasmania and Lord Howe Island, are reviewed. M. australica Bergroth and M. halei Esaki are synonymized with M. oceanica Distant. Two new species, M. distincta and M.fluvialis, and a new subspecies. M. fluvialis weiri, are described from eastern Australia. Available bio-ecological information is provided for five species and a key is given to species and subspecies.