Xerula australis has synonyms Xerula radicata var. australis and Oudemansiella radicata var. australis. (ref: Bougher and Syme) There are several closely related species that are difficult to distinguish even with a microscope.
While this species is reported to be edible, it does not find too many rave reviews, although one variety of Xerula radicata is being sold in kit form in China and they describe it as delicious (I suppose they would!).
It has been suggested that they might make a colourful addition to a stir fry. You would need to find a few of them though, as they are only a small mushroom with a cap 20-40 mm across and a tough inedible stem. They have quite a distinctive appearance as shown in this image kindly provided by sunphlo.
An interesting feature of Xerula radicata and most probably this variety is that it contains an anti-hypertensive agent known as oudenone. (who’d have known?) The cultivation of the fungus in liquid medium and extraction of the active ingredient is the subject of US patent 3835170. The information in that patent suggests that the active ingredient is reasonably heat stable and should survive a mild cooking process at least. Whether this is a good thing or not might depend on the individual.
I have set up a new category for fungi that I have not had any personal experience with, or reports of, other than that they are mentioned in the literature as being edible. If anyone has experience with eating these, I would like hear about it.