Charophytes (family Characeae) are a cohesive group within the green algae. The genus Chara is abundant and diverse in a variety of Australian habitats. Approximately 37 taxa of Chara have been described on the basis of Australian collections. The current status of charophyte taxonomy is confused. RD Wood revised Australian charophytes in 1972 on the basis of an erroneous species concept, and charophytes are rarely identified lower than genus by ecologists and water managers. Many species were described by overseas experts in the mid-1800s, and this trend continues to the present day. Typically, species descriptions have been based on examination of few specimens, and sometimes not even fertile representatives of each species. In this study Wood’s (1972) taxonomic treatment of Australian members of the genus Chara is examined and analysed in relation to historical species concepts and more recent experimental taxonomy and oospore morphology. Thorough studies based on determination of reliable indicators of genetic incompatibility through culture studies, including oospore morphology and genetic analysis and objective analysis of fertile specimens, are now required.