Coal burst is the violent failure of overstressed coal, and it is often accompanied by sound, coal ejection and seismic events. It is subsequently recognized as a serious safety risk of Australia after double fatalities coal burst happened at Austar Coal Mine. Considering the increasing trend of coal burst severity and frequency with mining depth, it is an urgent task to develop the coal burst risk assessment methods for Australia underground coal mines. Coal burst propensity index method is a widely used method of burst risk evaluation of coal as it is summed up from the coal burst research and practice of many countries. This paper presents the experimental and theoretical research of coal burst propensity index method for coal burst risk assessment in Australia. The definition of four indexes including elastic strain energy index (WET), bursting energy index (KE), dynamic failure time (DT) and uniaxial compression strength (RC) is introduced in the first part. Then, the standard laboratory test process and test parameter of coal burst propensity index is presented. DT test is conducted with 0.3 mm/min displacement control loading rate while other test is with 0.5 mm/min. Besides, modified data processing and risk classification method of test are proposed. Differentiate analysis of stress-strain curve is adopted in the data processing of DT and KEindex. A four level risk classification form of burst risk is recommended for Australian underground coal mines. Finally, two likely improvement methods of WETtest, including volumetric strain indicator method and theoretical calculation method, are discussed.