Saunders‘case moth - Metura elongatus
Found the cocoon in a Dodonaea shrub and observed the caterpillar feeding on Dodonaea leaves. In the Image the Head only popped out just enough to reach a leaf. Me just touching the scrub was enough for it to retreat very quickly and shut the opening. When the opening is shut it is impossible to open it without causing damage. The caterpillar must use its feet to hold it shut.
Saunders' case moth or the large bagworm is a moth of the Psychidae family. It is known from the eastern half of Australia, including Tasmania.