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McArthur spent 16 years living in Japan but returned to live in Canberra in 1996. In 1999 McArthur's first book was released in Australia, entitled Time Future. It won the 1999 George Turner Award and finished ninth in 2000 Locus Awards for best first novel. In 2002 she released the sequel to her first novel entitled Time Past which was a short-list nominee for the 2003 Ditmar Award for best Australian novel. In 2004 her third novel Less Than Human won the 2004 Aurealis Award for best science fiction novel which also was a short-list nominee for the 2005 Ditmar Award for best novel. In the 2005 Ditmar Awards McArthur and co-editor Donna Hanson were short-list nominees for best collected work with their anthology Encounters.