Four taxa of the genus Phaeocollybia are described from south east Aus
tralia. Two species P. australiensis and P. ratticauda and one variety
P. ratticauda var myrtaceophila are found in association with dry fru
ited myrtaceous species in New South Wales. The remaining species P. t
asmanica, (previously recorded as P. ratticauda), is found in associat
ion with Nothofagus forest in the island state of Tasmania. Together t
hey represent the first fully described species of Phaeocollybia from
Australia and the first recorded from the Australian mainland. Examina
tion of Australian collections confirms the presence of caulocystidia
in all taxa. In addition, capitate pileocystidia are present on the ep
icuticular hyphae in all cases, a feature not yet recorded for other s
pecies world-wide.