Large collections of Syllidae (Polychaeta) from around Australia, which were deposited at the Australian Museum (Sydney), and at Museum Victoria as well as some specimens from Tasmania, have been examined and identified. Additionally material from the Hamburgische Zoologische Museum der Universität, Hamburg, Germany was examined. All known Australian species of the subfamily Exogoninae (Syllidae) are described and figured. Some were examined using the Scanning Electron Microscope to illustrate some characters and methods of reproduction in this subfamily. Keys to genera and species are given. A total of 74 species are reported from Australia belonging to 8 genera: Nooralia San Martín, 2002 (1 species); Salvatoria McIntosh, 1885 (7 species); Prosphaerosyllis San Martín, 1984 (10 species); Erinaceusyllis n.gen. (10 species); Sphaerosyllis Claparède, 1863 (12 species); Brania Quatrefages, 1866 (3 species); Parapionosyllis Fauvel, 1923 (2 species); and Exogone Örsted, 1845 (29 species). A total of 22 new species are described: Salvatoria pilkena, S. koorineclavata, Prosphaerosyllis battiri, Erinaceusyllis cirripapillata, E. ettiennei, E. kathrynae, E. hartmannschroederae, Sphaerosyllis bardukaciculata, S. goorabantennata, S. voluntariorum, S. georgeharrisoni, Parapionosyllis winnunga, P. richardi, Exogone (Parexogone) patriciae, E. (P.) annamurrayae, E. (P.) penelopeae, E. (P.) wilsoni, Exogone (Exogone) koorenborongi, E. (E.) haswelli, E. (E.) ingridae, E. (E.) goorapuranga, E. (E.) arrakatarkoola. Additionally, 13 species are new records for Australia: Exogone (P.) homosetosa (Hartmann-Schröder, 1965b); E. (P.) wolfi San Martín, 1991a; E. (P.) caribensis San Martín, 1991; E. (P.) gambiae Lanera, Sordino & San Martín, 1994; Exogone (E.) longicornis Westheide, 1974; E. (E.) lourei Berkeley & Berkeley, 1938; E. (E.)breviantennata Hartmann-Schröder, 1959; E. (E.) dispar (Webster, 1879); E. (Sylline) naidinoides Westheide, 1974; Sphaerosyllis capensis Day, 1953; Prosphaerosyllis isabellae Nogueira, San Martín & Amaral, 2001; Erinaceusyllis bidentata (Hartmann- Schröder, 1974); and E. belizensis (Russell, 1989). The Australian records of Sphaerosyllis perspicax Ehlers, 1908, and S. sublaevis Ehlers, 1913 should be referred to other species, and are not included (see Ehlers, 1908; 1913). A general discussion of the reproduction and systematics of the subfamily is given.