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A few weeks ago I lost my card UK driver's license somewhere in Arizona/Nevada.

In November I will be in Australia. My new license may not make it here in time.

However I still have the paper counterpart of my UK license.

I've been told you can drive/rent cars with the paper part + passport? Is this accurate, or do I need something additional to be legal to drive in Australia?

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Which state(s)? AFAIK, driving rules are not a federal matter, and vary between states (sometimes quite a bit, eg for elderly drivers), so the state(s) you'll be in might well make a difference – Gagravarr Sep 28 '12 at 23:15
@Gagravarr - I'd only be driving in Queensland, in and around Cairns. – Mark Mayo Sep 28 '12 at 23:49
up vote 2 down vote accepted

I'm not sure how valid a paper UK license is in Australia. I believe it would be up to interpretation. If you rent a car, you might have to convince them that your paper license is indeed an authorised version of your real driver's license. It might be a good idea to call up the rental car company and ask beforehand.

Road rules and regulations are governed on the state level. Each state has its own rules regarding the use of foreign drivers licenses. Some states require an International License as well. The Australian Government site summarises this well.

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We used to have paper licenses in Australia too up until some time in the 1980s I believe, so even if individual Aussies are not familiar with them I think the bureaucracy probably is. – hippietrail Sep 28 '12 at 6:18

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