OBJECTIVE The primary objective of this survey was to assess the prevalence of use of dermoscopy by Australian dermatologists. The secondary objective was to understand the perceived advantages and disadvantages of dermoscopy use. METHODS Invitation letters were sent to all 282 Australian dermatologists belonging to the Australasian College of Dermatology in 2008. The survey, investigating prevalence and perceptions of dermoscopy use, was completed either online or on paper. RESULTS Ninety-nine of the 283 (35%) dermatologists completed the survey eligibly. A total of 98% of dermatologists reported using dermoscopy and 95% had received formal training. Only 2-3% found it not useful for the diagnosis of pigmented lesions, melanoma or atypical naevi, whereas 12% found it not useful for the diagnosis of non-pigmented tumours. Eighty-five percent found it improved diagnosis compared to naked eye examination; and 57% of dermatologists used baseline dermoscopy to follow up changes in lesions, of which 78% used some image capture device. CONCLUSIONS In the sample of Australian dermatologists agreeing to be surveyed, there was a high prevalence rate of dermoscopy use. The factors supporting the use of dermoscopy are explored in this foundational database of dermoscopy use among Australian dermatologists.