Results of an investigation into the fungi associated with submerged wood in Lake Barrine, north Queensland, Australia are reported. Thirty-nine fungi were identified, 15 ascomycetes, 23 deuteromycetes and one basidiomycete. The frequency of occurrence and the effect of the incubation period on the recovery of fungi has also been investigated and is presented. The new species Massarina lunispora and Dactylaria lakebarrinensis, and some other notable species, are described and illustrated.