The Federal Coalition has found a new platform from which to attack on the Gillard Government, it\'s accusing the Federal Government of failing to protect koalas. A fungal disease, which attacks gumtrees, has made its way down the east coast and into Victoria. The Opposition\'s agriculture spokesman, John Cobb, says the Government has not tried hard enough to eradicate myrtle rust and it could now be a threat to koala populations. As Simon Lauder reports, it\'s also a looming threat to industry. SIMON LAUDER: Since being found in Australia for the first time two years ago myrtle rust has spread from New South Wales to north Queensland, and only last month it was detected in Victoria. It attacks the myrtaceae family of trees. Agronomist, Peter Entwistle. PETER ENTWISTLE: Unfortunately in Australia that\'s a huge part of the environment. And if anyone looks out their window basically they will probably see myrtaceae species. SIMON LAUDER: The Federal Opposition\'s agriculture spokesman, John Cobb, says the fungal disease now threatens the livelihood of an Australian icon. JOHN COBB: Australia\'s Koala bear population will be extraordinarily threatened by myrtle rust. SIMON LAUDER: He\'s no koala expert, but John Cobb says Myrtle Rust may threaten the very existence of some koala populations. JOHN COBB: The forest redgum is its major food source, not its only, but its major food source in Australia. The koala is a fastidious eater and myrtle rust is attacking the forest redgum. Even if it doesn\'t kill it, it will lower the value of that food to the extent koalas in places will probably not survive on it. This has the ability to absolutely change the way our - even our eucalypts survive in the east coast, in fact, in the whole of Australia. As I said, it now goes from Victoria way up to Rockhampton. SIMON LAUDER: How serious is it for koalas say on a local population level? JOHN COBB: Look in some … Look without doubt I think myrtle rust will probably trigger the end for some ionic koala populations in particular areas, particularly some where they are totally dependent upon the forest redgum. SIMON LAUDER: Sydney University\'s Dr Mathew Crowther is an expert on koala habitat; Dr Crowther says habitat loss is the biggest problem for koalas and myrtle rust will make that worse. MATHEW CROWTHER: Some populations are quite close to the edge. Some are - we know of local populations going extinct, particularly in northern New South Wales and Queensland, that\'s where koalas are particularly threatened. When you\'ve got a problem of habitat, and the koalas really need habitat, and then you throw something that affects that habitat, yeah, it\'s certainly not a good outcome. SIMON LAUDER: Dr Crowther says myrtle rust has the potential to change the ecology of some Australian forests. MATTHEW CROWTHER: It does affect pollination and things like that. So birds and bats and things like that could be particularly affected. So it probably should be addressed as much as it can be. SIMON LAUDER: Since being detected in Victoria last month, myrtle rust has been found at 22 sites across the state, mainly at nurseries in and around metropolitan Melbourne. Managers of the Melbourne Royal Botanic Gardens are on alert for myrtle rust. South Australian authorities are also warning nurseries, landholders and gardeners to be on the lookout for the yellow outbreak on the leaves of plants entering the state. Myrtle rust could turn into a major problem in nurseries and timber plantations and it\'s already devastated some valuable lemon myrtle crops in northern New South Wales. Agronomist, Peter Entwistle, says he was hoping tea-tree plantations wouldn\'t be affected but in recent weeks the fungus has taken hold. PETER ENTWISTLE: The steady progression of the rust from being hardly noticeable at all to being quite easy to find now. And we feel that there is the possibility that it is going to have a significant economic impact on the industry. SIMON LAUDER: If it\'s unstoppable now, the Federal Opposition\'s agriculture spokesman, John Cobb, says that\'s because the initial response was too slow. JOHN COBB: We do not know what money it would take now, but if they\'d put $10 million it would have been plenty to deal with the situation until we could work out exactly how to eradicate it, back in mid-2010. Here we are 18 to 20 months later, it is probably out of control. SIMON LAUDER: The Federal Environment Minister, Tony Burke, and the Agriculture Minister, Joe Ludwig, are both unavailable to comment. A spokeswoman for Joe Ludwig says $1.5 million has been allocated to a national pilot program for the ongoing management of myrtle rust. A million of that is already being used. Mr Burke is due to make a decision on whether to put the koala on the threatened species list later this month.