Snowpatch plant community distribution and composition are strongly tied to the duration of long-lasting snow cover in alpine areas; they are vulnerable to global climatic changes that result in warmer temperatures and longer growing seasons. We used a revisitation study to quantify early-melting snowpatch floristic and functional diversity change in southern Australia, and document shrub size-class distributions over time to detect evidence for their encroachment into snowpatches, a key prediction with climatic change. Early-melting snowpatch vegetation has declined in areal extent, changed in species composition, and shrub and tussock grass cover has increased, but changes in functional trait diversity were less clear. Species gains, particularly by non-clonal species, accounted for most of the floristic change observed. Shrub recruitment was ongoing by most shrub species. Biotic differentiation is occurring; many early-melting snowpatches are transitioning to a novel state with changed composition and taller vegetation structure, but there is little evidence for species loss having occurred. Given enough time, however, the long-term loss of species is likely (i.e. biotic homogenisation) if taller shrubs outcompete short-statured snowpatch species. Our results provide evidence that this alpine ecosystem is forming a novel community with an uncertain future.