The recent State of the Environment report revealed an Australian natural environment in crisis, beset by extinctions, impacts of invasive species and the looming threat of climate change and the extreme events it will bring. Despite having some of the leading researchers in the world in environmental science, Australia continues to fail in almost every area of effective environmental management. After reviewing the data and the status quo, I will argue that Australian environmental legislation, monitoring and management is hopelessly fragmented, convoluted and failing to deliver. There is an urgent need for policy reform and a broader coordinated program of investment in environmental research and management.