It's a breaking contact manuever. Normally, if your squad is "on line" facing the enemy you would bound by elements in reverse, with one element providing covering fire, while the other hauls ass to a place back where they get down and provide cover, when the first element then hauls ass and so forth. That is the usual method of breaking cover in open country.
In an Australian peeloff, you've bumped into a strong enemy head on in file formation. That is, your point man has made contact straight ahead. Especially in jungle or other tight country where there is limited room to manuever to the sides, you will execute an Australian Peeloff.
The point man unloads a full mag on full auto, and "peel" to one side and run back down the trail next to his lined up patrol and past them to good cover. As soon as he passes the next man and is out of the way, that man (usually the patrol leader) fires off another full mag, and peels off to the other side of the patrol file (if there's room) and joins the point man to the rear, reloads, gets set etc.
And so on, each man fires a full auto blast and hauls ass, one after the other. If you have a 40mm grenade ready, you fire that too. Belt fed MGers will fire off 50-100 rounds, depending on cover etc before hauling ass.
The entire patrol (say, 4-10 men) meet up to the rear, and either continue to haul ass, or set up a hasty ambush for pursuers, or whatever.
That, is an "Australian Peeloff." You can only practice that, live fire, with well trained troops. Otherwise, you are asking for somebody to get a full auto burst in the back.
We had a Marine unit try it with blanks and MILES Gear during Gallant Knight '88.
Half of the damn unit's MILES sensors were going "BEEEEEEEP!" (The "you're dead" tone.)
Thanks Travis. I appreciate your explanation.
But if you don't mind, I'd really like to hear your thoughts/recommendations on the magazine changes EE referred to, and my confusion on exactly how you're suppose to perform/train.