Where "Grouse" Comes From
"Grouse" as Australian slang for excellent emerged in 1924 — it is defined ("GROUSE—Something good.") in Gilbert H. Lawson's "A Dictionary of Australian Words and Terms" that year — and the popular explanation — that it comes from wealthy people's prized grouse birds, the ultimate sign of a good thing — is a nice story that turns out to be false, since grouse hunting was never a popular sport in Australia.
The more likely source is Scottish and Northern English dialect "crouse" (pronounced "kroos"), meaning merry and cheerful — "I'm feeling crouse" once meant feeling very good indeed. Scottish English made a substantial contribution to Australian slang generally, and "grouse" losing its final consonant sound on the way to becoming "excellent" fits that pattern neatly.
Source:
"That pizza was grouse!"
How Aussies Actually Use It
"Grouse" is a straightforward compliment — food, weather, a good deal, or a great day out can all be described as grouse.
It's especially associated with Victorian slang and tends to be used more by older generations, though it's still widely understood right across the country.
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