The rust fungus Masseeëlla capparis is reported for the first time in Australia on Flueggea virosa(Phyllanthaceae). This is the first species of Masseeëlla found in Australia. The rust is described and illustrated from Australian specimens. A discussion on species of Masseeëlla is provided. A reconstructed phylogeny with the Large Subunit region of ribosomal DNA indicated that Masseeëlla has an affinity with the Phakopsoraceae.