Atmospheric correction of high spatial resolution (10–30 m pixel sizes) satellite imagery for use in large-area land-cover monitoring is difficult due to the lack of aerosol optical depth (AOD) estimates made coincident with image acquisition. We present a methodology to determine the upper and lower bounds of AOD estimates that allow the subsequent calculation of a biophysical variable of interest to a pre-determined precision. Knowledge of that range can be used to identify an appropriate method for estimating AOD. We applied the methodology to Landsat 5 Thematic Mapper data in Queensland (QLD) and New South Wales (NSW), Australia, and determined that AOD must be estimated within approximately 0.05 of actual AOD for retrieval of foliage projective cover (FPC) to a precision of 10%. That knowledge was then used to determine the relative merit of using a fixed constant, Aerosol Robotic Network (AERONET) climatology, or dense dark vegetation (DDV) method for estimating AOD in QLD and NSW. It was found that using a fixed AOD of 0.05 allows estimates of FPC within 10% of their true value when the true value of AOD is less than 0.1. Such AOD values account for approximately 90% of all inland observations and 65% of coastal observations as determined by analysis of data obtained from AERONET. Using an AERONET climatology to estimate AOD was found to increase the likelihood of accurate FPC retrieval in coastal locations to 83%, although it should be noted that AERONET data are very sparse. DDV has potential in eastern and central areas for retrieving AOD observations with greater precision than fixed values or climatologies. However, more work is needed to understand the temporal variation of vegetation reflectance before the DDV method can be used operationally.