This, like Anthurus, is a stinkhorn. There's a smelly spore slime on the closely attached cap at the top and there's the same red colouring as in Anthurus. So, there's a visual and smell cue to attract carrion or dung-loving invertebrates that act as spore dispersers. I've seen it in various parts of Canberra and usually singly.
Thanks very much Heino that is fascinating. Now I understand why they are called stinkhorns... This seems to be our first official sighting and photo of this species on the site. Do they typically grow back in the same location year after year or is it completely random?
I'm a little surprised that it hasn't yet turned up on Canberra Nature Map. It is quite striking and by no means the rarest of things locally. There's no reason why it can't reappear in the same spot, but whether that's a year later, three years later or two months later depends on various factors. The out-of-sight mycelium would still be there and it's a matter of when it accumulate the reserves necessary for producing another stinkhorn.