Growing from a buried seed.
Similar to Redleg Club (Typhula erythropus)
Not sure where to start looking completely unfamiliar. Spongy texture (similar to lichoperdon) Growing at base of mature possibly dying tree in native bush. No unusual smell
Amanita seems possible here however the annulus is throwing me off.
Cortinarius?
Seems Lactifluus austropiperatus, ID suggested by Samuel Quixley and looks good.
https://inaturalist.ala.org.au/observations/147815337
Location is estimate only as no GPS