Abstract Similarities in the evolution of late Proterozoic-early Palaeozoic mobile belts flanking the southeast Australian and adjacent Antarctic craton margins support the evidence provided by Archaean-early Proterozoic terranes for former juxtaposition of these two cratons in a Gondwanaland context. The mobile belts show an inversion from an extensional to a contractional regime during this evolution of the active palaeo-Pacific margin of Gondwana. Accretion of outboard terranes along the eastern margin of the mobile belts appears to be preceded by subduction in the Antarctic section whereas, in Australia, contraction of the mobile belt resulted in southeastward transpression at its eastern margin, following obduction of oceanic crust, prior to terrane accretion and collision. Further crustal extension expressed by the subsequent formation of basins in both continents led to lateral displacement of formerly contiguous geologic structures.