Don’t know what this is. A nest for spiders? Had fallen from a tree at Charles Sturt University. Thurgoona. Very clever use of leaves and twigs in its construction.
It's a nest (or former nest) of processionary caterpillars. They are very hairy and can cause discomfort, so be careful handling even the abandoned 'bag'. Sometimes also known as 'itchy grubs'. Google will give more info, but to kick off, here's an article discussing their lifecycle: https://austplants.com.au/Processional-Caterpillars-(Ochrogaster-lunifer)
Thank you so much. Have seen several of these over the years and never knew how to identify it. Good on Albury Wodonga Nature Map! And Karen. I’m hooked.
If you want to see what the moth looks like that lays the eggs that grow into the caterpillar that makes this shelter post the following link in the address box above wodonga.naturemapr.org/Community/Species/Sightings/45158