Understanding the loss of the final few species of Australian megafauna is beset by a paucity of data on human arrival, well‐provenanced megafauna, human/megafauna population range and distribution (coexistence and interaction), and the range, scale and impact of environmental changes spanning the human–megafauna period. To overcome these shortcomings, the occurrence and decline of coprophilous fungal spores of Sporormiella in sediments have been used as a proxy for extinct megaherbivores. The Sporormiella evidence is presented as the key indicator of extinction timing and these reports are often from locations where there is no known archaeological record or megafauna remains. However, interpreting fungal spore occurrence is not straightforward, as demonstrated by studies investigating taphonomy, taxonomy and the types of animal dung where Sporormiella occurs. No detailed studies on these problems exist for Australia and no evidence supporting the use of Sporormiella as a valid proxy has been reported. Here we examine the occurrence of Sporormiella spores from Cuddie Springs in south‐eastern Australia. Despite a well‐preserved suite of megafauna fossils, Sporormiella occurrence is sporadic and frequencies are low. We conclude that using Sporormiella alone as an indicator for the presence of megafauna is premature for the Australian context.