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The caterpillar of a case moth in a mobile silk case seen whittling the twig (pics 1 & 2), perhaps to attach it to the case later. Attached to the silk case were a few leaves and twigs. The case was about 45mm long with some of the twigs extending to about twice the length of the case. Pic 5 shows the caterpillar's legs poking out of a soft silky case.
Young Eucalyptus tree - stringy bark. Spotted beside a busy highway. http://www.lepbarcoding.org/australia/sp...
To see this case moth caterpillar in action was just amazing ! The case appeared to have very few sticks attached to it and they were of uneven length, the reason for it's common name,perhaps. Family: Psychidae Would like confirmation of this ID.