If you read the comments on the original Flickr image, you’ll note that this fungus was tentatively identified as Phellorinia herculanea by Pam Catchside of the Plant Biodiversity Centre in Hackney, South Australia. Browsing the very few photographs of this genus online, it seems these fruiting bodies are not yet fully mature, hence the difficulty in confirming their identity. At maturity, they should be more club-shaped. The tops of these fungi will eventually produce a powdery mass of spores.
The Aboriginal Use of Fungi page from the Australian National Botanic Gardens notes that Phellorinia herculanea was used for body decoration.