Kingdom: Fungi
Division: Basidiomycota
Subdivision: Agaricomycotina
Class: Agaricomycetes
Order: Agaricales
Family: Strophariaceae
Genus: Weraroa
Scientific name: Weraroa erythrocephala
Common name: Scarlet Pouch
Growing from dead branch covered in litter on the forest floor in a very damp area in July at the Pukatea Dell. It's pouch like cap is bright red in colour enclosing a brown spore mass. 1.5-3cm in diameter and its stem was white and about 3 cm in length.
Thanks to Wikipedia for text and information: https://creativecommons.org/licenses/by-sa/3.0/