Seventeen species of the lichen genus Physcia (Schreb.) Mich. (Ascomycotina, Physciaceae) are reported from Australia. One species, P. jackii. Moberg, is described as new, and ten others are recorded for the first time from the continent: P. citrostriata, P. bizicina, P. crispa, P. decorticata, P. nubila, P. phaeocarpa, P. poncinsii, P. sorediata, P. undulata and P. verrucosa. Physcia albo- plumbia is synonymized with P. albata. Some morphological and anatomical characters are assessed, and a key to the species is presented. Biogeographical affinities and distribution patterns within Australia are discussed