It’s quite difficult to quantify the elite status of Australian and New Zealand forces during the First World War. Nowadays, we can apply the mantle of elite to special forces such as the SAS or Navy SEALS because they undergo specialised training and conduct different kinds of operations that makes them stand out from other military forces. During the First World War, Australian and New Zealand forces undertook the same training as their British counterparts and for the most part conducted the same operations so I find it difficult to apply the label of elite to the ANZACs despite the their impressive conduct during the war.

You are right when you say that colonial formations such as the Australian Imperial Force were held in low regard by some members of the British military establishment at the beginning of the war. This wasn’t exactly unfounded either. Despite what our stories of Gallipoli tell us, the initial failure of the campaign was just as much due to the inexperience of our men and officers as it was the British commanders behind the lines. In 1916 during the Somme Offensive, Australian commanders conducting operations around Mouquet Farm failed to prioritise objectives and launched minor attacks against German positions such as machine gun nests and outposts. This failure saw Mouquet Farm remain in German hands for far longer then it should have been.

All that said, the image of the Australian fighting man in the eyes of British commanders began to change in 1916. Operations such as those at Pozieres displayed the Australian fortitude that is commonly spoken about and cast Australian formations as being particularly resilient in the face of extreme conditions. By 1917, Australian divisions, along with the New Zealand Division and the Canadian divisions had been established as particularly hard fighters and from 1917 onwards, the Australian and Canadian divisions spearheaded every major British offensive on the Western Front. It became a common saying that whenever the Australians and the Canadians appeared in a sector, an offensive was in the offing. This didn’t come without cost. Australia suffered one of the highest casualty rates of British forces with about 64.8 percent of the men that left Australia being killed OR wounded.

Back to your question, I wouldn’t classify Australia’s First World War divisions as being elite. While they developed a reputation for being stubborn and resilient fighters capable of achieving remarkable victories despite terrible odds, the First World War is filled with similar accounts from all nations, including Britain whose combat record is often overlooked in Australia and even worse held in contempt because it suits our narrative of the colonial child emerging from the shadow of the mother country. Australian forces did have a lot to be proud of though. They pioneered the 1918 practice of Peaceful Penetration, a low level initiative that saw small platoon strength elements penetrate German lines and take prisoners, intelligence and even full blown German positions with little to no casualties. They also had remarkable victories at places such as Villers-Bretonneux and Le Hamel which can be considered almost wholly Australian victories (several American units were present at Le Hamel but otherwise it was an entirely Australian action).