Timber usage in the Australian construction industry has significantly increased due to its strength, aesthetic properties and extended allowances recently introduced in building codes. However, issues with acoustic performance of lightweight timber buildings were reported due to their inherit product variability and varying construction methods. This article reviews the recent literature on the transmissions of impact and airborne sounds, flanking transmission of timber buildings, and the state of computer prediction tools with reference to the Australian practice. An in-depth analysis of issues and an objective discussion related to acoustic performance of timber buildings are presented. Timber is a lightweight material and shows low airborne sound resistance in low frequency range. Attenuation of sound transmission with addition of mass, layer isolation, different products like cross-laminated timber and prefabrication are discussed. Challenges in measuring sound transmissions and reproducibility of results in low frequency ranges are discussed. Well-defined measurement protocols and refined computer simulation methods are required. The serviceability design criteria for modern lightweight timber applications in Australia need to be re-evaluated in the area of impact generated sound. Developing computer tools to predict airborne and impact sound transmission in lightweight timber buildings is quite challenging as several components such as timber members and complex connections with varying stiffnesses are non-homogeneous by nature. Further, there is a lack of experimentally validated and computationally efficient tools to predict the sound transmission in timber buildings. Computer prediction tools need to be developed with a focus on mid-frequency transmission over flanks and low-frequency transmission of timber and prefabricated buildings.