The World Heritage wilderness of south-western Tasmania contains a complex vegetation mosaic of eucalypt forest, myrtaceous scrub and fire-sensitive rainforest embedded in highly flammable sedge–heathland. Aboriginal burning shaped this temperate region for millennia, and large, severe wildfires have prevailed since European settlement in the early 19th century. In 2013, the Giblin River fire burnt 45 000 ha of wilderness, most of which was sedge-heathland. We surveyed the fire footprint, and an adjacent management burn, to investigate the drivers of fire severity in sedge-heathland and to assess the regeneration response of woody vegetation and how these were influenced by antecedent fire histories. Analyses based on multi-model inference identified time since fire as the most important driver of sedge-heathland fire severity, as measured by diameter of burnt twigs. Mortality was high for both main stems (98%) and whole plants (91%), with only 16% of dead stems resprouting. Resprouting and seedling establishment were little affected by fire severity. The value of prescribed burning in reducing both the extent and severity of wildfires in the south-western Tasmanian landscape, and in maintaining stand-age heterogeneity, is illustrated by the wildfire having self-extinguished on the boundary of the management burn.