The genus Nitella Ag. in algal family Characeae is characterised by furcate (forked) branchlets, compressed oospores (i.e. oval in cross-section), terminal antheridia and a 10-celled coronula on the oogonium. Species of Nitella are submerged plants that grow in a variety of wetland and riverine habitats. Approximately 89 taxa of Nitella (species, subspecies, varieties and forms) have been described on the basis of Australian collections, and published estimates of the number of species range from 18 to >35. The lower value is based on the assumption that infra-specific variation is great, species have a wide distribution, monoecy and dioecy are not indicative of speciation and the number of furcations and the ratio of branchlet segment lengths vary for a species owing to the environment in which they grow. The higher value is based on evidence that morphological characters are relatively constant for a species, that oospore variation is a good indication of speciation and that monoecious and dioecious entities are not inter-fertile. An overview of Australian members of the genus is presented here as a framework for further taxonomic work. Representatives of all three subgenera of Nitella occur in Australia, with subgenus Nitella poorly represented, and subgenera Tieffallenia and Hyella equally speciose. The subgenera are defined here in relation to the Australian taxa they contain. In the present treatment, section Migularia is transferred from subgenus Tieffallenia to subgenus Hyella, and several species are transferred to subgenus Tieffallenia. Within subgenus Tieffallenia, variation in vegetative and oospore morphology is useful for distinguishing among sections and species. However, although members of subgenus Hyella display a similar range of variation in vegetative morphology, most of the species have similar, reticulate, oospore ornamentation. Australia is home to a large number of endemic species of Nitella, many of which are dioecious. The total number of species and the degree of endemism have been underestimated in earlier studies, and it is likely that more than 50 species of Nitella will be recognised on the basis of Australian specimens. A key to the subgenera, and keys to sections in the subgenera are provided.