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The vast majority of slang terms used by native Australians mirror those used by the English. In particular, abbreviations such as "barbie" for "barbeque"; "brekkie" for "breakfast" and "in the nuddy" for "in the nude" are popular expressions used frequently in both countries. Similarly, the English will be accustomed to such expression as "I'm stuffed" meaning "I'm full" and "I'm beat" meaning "I'm tired". Unfortunately I feel some American readers may find I'm talking in a whole other language though.
If you're in an area where you're able to pick up the television soap operas "Neighbours" and "Home and Away", then regardless of whether or not you like them, you'll benefit from watching a few episodes. The script frequently makes use of Australian slang in keeping with the characters' ages and social statuses. What's particularly helpful about watching these shows, other than that they're broadcast around the world, is that watching them will help you to ascertain correct contexts for various slang.
For example, "grouse" and "bonzer" both mean excellent. However "grouse" is a young term used by teens and those in their twenties whereas "bonzer" tends to be a term used by the older generations. It's similar to how English youngsters wouldn't refer to things as "awesome" anymore whereas older generations might still use the term.
The best way to get to grips with Australian slang is to go out there speaking correct English (avoid using your home slang) and adapt as you go. If the friends or colleagues you're with are constantly referring to things as "grouse" then start slipping it in when you feel confident to do so. Abbreviations like "barbie" and "bathers" are more obvious and if you use the terms casually and confidently then you won't sound like an outsider trying to get in.
Useful Translations
Abbreviations:
Barb ie = Barbeque
Bathers = Bathing Suit
Brekkie = Breakfast
G'Day = Good Day (for Hello or Goodbye)
Cocky = Cockroach
Defo = Definetely
Arvo = Afternoon
Relos = Relatives
Descriptive Slang:
Bonzer = Excellent
Beauty = Brilliant, Really Nice
Ripper = Excellent (usually a person or thing is a "little ripper")
Grouse = Excellent
Bludger = Scrounger / User
Mate = Friend (can be sincere or sarcastic)
Bushie = Someone who lives in the Bush
Pom / Pommy = English
Kiwi = New Zealander
Dag = Nerd (Muppet / Woose etc)
Hoon = Reckless Person
Galoot = Reckless Person or Fool
Sheila = Woman
Bloke = Man
Geezer = Old Man
Common Terms:
Toushie = Bottom
Blew = Argument
Bogged = Stuck in the Mud
Grog
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