Forest degradation is a major cause of habitat loss for species that rely on old forest features. Quantitative knowledge of forest degradation and deforestation in the breeding range of the critically endangered swift parrot (Lathamus discolor) is poor but essential to inform effective conservation planning. We provide the first quantitative analysis of forest degradation and deforestation across the swift parrot breeding range. We identify trends and drivers of anthropogenic loss to determine whether current forestry policy is aligned with targets to secure species recovery. We used global datasets of forest extent, change and loss to evaluate historic deforestation and forest dynamics since the year 2000. We applied our analysis at three spatial scales within the breeding range: potential, core, and Swift Parrot Important Breeding Areas (SPIBAs). We measured trends in fire and anthropogenic forest loss before and after forestry policy changes. Results informed a land use change analysis to identify major drivers of forest loss. Habitat loss has occurred in more than 50% of the swift parrots' breeding range. More than 37% of the breeding range was permanently deforested prior to the year 2000. Of remaining forest in the year 2000, approximately a quarter has been disturbed, degraded or permanently deforested. Degradation was 6.5 times that of deforestation, and production forestry was the major human driver of forest loss. Forest loss rates in SPIBAs have doubled since forestry policy change in 2014. Degraded forests are unlikely to provide habitat for swift parrots and urgent changes to forest policies and practices are needed to ensure the perpetuity of the species. We highlight the advantages of using publicly available remote-sensing datasets to quantify past and present habitat degradation, deforestation, and land use change at biologically meaningful scales relevant to the recovery of threatened species.