The offshore area of the Otway Basin (south‐eastern Australia) is dominated by multibranched canyons where mass‐transport complexes are widely distributed. This study integrates high‐resolution multibeam and seismic data to investigate the importance of mass‐transport complexes in dictating the evolution of canyons. The study interprets three regionally distributed mass‐transport complexes that fail retrogressively and affect almost 70% of the study area. Within the mass‐transport complexes, seven canyons that initiated from the continental shelf edge and extended to the lower slope are observed. Although the canyons share common regional tectonics and oceanography, the scales, morphology and distribution are distinctly different. This is linked to the presence of failure‐related scarps that control the initiation and formation of the canyons. The retrogressive failure mechanisms of mass‐transport complexes have created a series of scarps on the continental shelf and slope. In the continental shelf, where terrestrial input is absent, the origin of the canyons is related to local failures and contour current activities, occurring near the pre‐existing larger headwall scarps (ca 120 m high, 3 km long). The occurrence of these local failures has provided the necessary sediment input for subsequent gravity‐driven, downslope sediment flows. In the continental slope, the widespread scarps can capture gravity flows initiated from the continental shelf, developing an area of flow convergence, which greatly widens and deepens the canyons. The gradual diversion and convergence through mass‐transport complex related scarps have facilitated the canyon confluence process, which has fundamentally changed the canyoning process. Thus, this study concludes that the retrogressive failure mechanism of mass‐transport complexes has a direct influence on the initiation, distribution and evolution of the canyons. The scarps associated with mass‐transport complexes have greatly facilitated the delivery of sediments and marine plastics from the shelf edge into the deep oceans, especially in areas where fluvial input is missing.