Forests currently cover over 20% of the Australian continent and are an important resource, subject to a wide range of economic and environmental pressures. These lands support substantial numbers of forest-dependent species with national forest inventories providing important information on biodiversity. National scale information on these forests has been collected or collated since 1988 under the National Forest Inventory (NFI) programme, but substantial problems with the ‘snap shot’ approach have been recognized, particularly with respect to monitoring change and a consequent move towards a permanent and sample-based continental forest monitoring framework (CFMF) has been proposed. CFMF is proposed to consist of three Tiers: (1) satellite imagery of the continent to identify forest and change in forest cover; (2) systematic high-resolution remotely sensed data and (3) permanent ground points at 20×20 km grid interception points. The CFMF approach is in line with the international trend of national forest inventories in developed countries although the Tier 2 approach offers a useful extension. An alternative inventory approach is provided by the National Carbon Accounting System (NCAS) which models the mass of carbon and nitrogen in seven separate living and dead biomass pools for any point under forest or agriculture land use since 1970. The NCAS approach allows fine spatial and temporal monitoring of changes in these carbon and nitrogen biomass pools, and predictions of changes that result from policy or management decisions. This paper briefly reviews NFI, NCAS and the proposed CFMF, with particular emphasis on issues of use and potential for monitoring biodiversity in this biologically very diverse country.