The Upper Jurassic Walloon Coal Measures (WCM) in the Surat Basin host the largest coal seam gas (CSG) resource in Australia. Despite this, a poorly defined lithostratigraphic framework hinders the development of reservoir models and groundwater flow simulations. Correlations in the WCM are challenging, owing to the complex arrangement of facies over short distances and the absence of a reliable regional stratigraphic datum. To better correlate the strata, 26 tuff beds were dated using the U–Pb chemical abrasion thermal ionisation mass spectrometry methodology across the Surat Basin CSG fairway. This initially suggested that coal-bearing strata in the basin were diachronous. However, the acquisition of a new date from the Surat Basin has identified a five million year time gap between dated tuffs ~20 m apart. This suggests the presence of an unconformity and that there were two independent episodes of coal accumulation in the basin. Above the unconformity, there are incised valleys with a sedimentary infill that transitions from fluvial- to tidal-influenced facies, as indicated by dinoflagellate cysts and tidal sedimentary structures, including double mud drapes. The cause of the unconformity is likely to be tectonic, as eustatic sea-level was rising during the Kimmeridigian. The marine incursion into the basin is the consequence of a highstand of sea-level during the early Tithonian. The application of the new chronostratigraphic framework should elucidate the evolution of fluviolacustrine systems in the basin and aid in resource prediction. Further dating of tuffs in the basin could refine the stratigraphic framework.