THey are fascinated with them, and one of them can sit for an hour and just stare. She's the one who loves herding and ducks were her favorite.
They haven't been on the floor together w/o any plastic or wire seperating them yet. I hold each chick in my hand everyday and the dogs get to see them with the command "be gentle", which is the command I use for meeting little kids or meeting little puppies.
Both of my dogs grew up with two cockatiels and they are fine on the ground with them. My black tri (the one in my avator, the blue merle is her brother, which i don't own) was kinda naughy with them when she was in her teenager phase; just a little too rough because she didn't understand they weren't moving toys. We had one scare where she picked one up in her mouth, when she was about 6 mo old, but when she was immediatley yelled at she dropped the bird. The cockatiel was 100% okay, so she must have not applied any pressure. Everything was OK after that point because I think she finally understood they were not stuffed toys.
I also grew up with an aussie who is 14+ years old now. He was wonderful with our pet birds and our cat. However, he would grab cats that weren't our own, and killed several possums and a raccoon. He had a high prey drive but really understood what was ours and what wasn't, which if you think about it, thats a wonderful farm dog trait.
Just be careful when your aussie is about 5-8 months old, because thats when dogs will test boundaries to see what they can get away with. Aussies are very easy to train, and they are a breed that likes to follow in its master's footsteps. Just lay out the rules for them, remembering to reward the good behavior, not just punishing for the bad.