The ruby bonnet grows in moist sub-tropical rainforests like the one at Mary Cairncross Scenic Reserve.
It is another mushroom of the basidiomycetes class (like the anenome stinkhorn).
This small mushroom is named after its bright red cap which grows to 2cm in diameter on top of a slender stem. The cap starts off curved but as the mushroom matures the edges of the cap drop and it flattens out. The top is lined with darker red lines fanning out from the centre. Its gills are paler and the stem a darker, shiny red.
Look closely at the decaying wood or tree bases where the trunk meets the earth and you may spot the small ruby bonnet growing alone or in clusters.