Abstract There is increasing global concern that climate adaptation efforts are falling behind the increasing risks associated with climate change. A number of reviews have identified this general issue in multiple nations and jurisdictions. In Australia, it is argued here that adaptation of the coastal built environment is operating at two speeds: the two-speed adaptation economy. Large civil assets and facilities in Australia now mostly have adaptation plans and strategies in place; although progress in actual on-the-ground implementation is variable in some cases. By contrast, adaptation of coastal communities and settlements continues at a very slow pace with very few specific adaptation measures being implemented that were not already being implemented as business as usual for flood or erosion management. The reasons for these differences in adaptation progress is investigated here. A key outcome of the thinking presented here is the reinforcement of the result that adaptation of coastal communities is not a challenge of relocating buildings, but rather a challenge of incentivising and supporting communities to act.