Taxonomic revision and cladistic analysis of a morphological dataset for Australian Tertiary temnopleurids resolve the phylogeny of the group and allow the testing of a series of hypotheses about the evolution of larval development and consequences of changes in development. Australian Tertiary temnopleurids encompass all three major developmental types found in marine invertebrates (planktotrophy, lecithotrophy, and brooding). Planktotrophy is plesiomorphic for this clade, and nonplanktotrophic larval development evolved independently at least three times during the Tertiary. The change to a nonplanktotrophic mode of larval development is unidirectional with no evidence of reversal. In addition, there is no evidence of an ordered transformation series from planktotrophy through planktonic lecithotrophy to brooding. In common with previous studies of other invertebrate groups, analysis of the raw data suggests that nonplanktotrophic taxa within this clade have significantly shorter species longevities, more restricted geographic ranges and higher speciation rates than taxa with planktotrophic development. However, analysis using phylogenetically independent contrasts is unable to confirm that the stratigraphic and geographic patterns are unbiased by the phylogenetic relationships of the included taxa.