Painted Apple Moth Caterpillar (Teia anartoides) Lymantriidae.
Published April 27, 2010 | 
Image taken of 20mm caterpillar feeding on Acacia leiocalyx. “The female moths are flightless, however are found over most of Australia. Newly hatched caterpillars have a special way of dispersing by spinning threads of silk which are caught in the wind. This species has recently (1999) been recorded in New Zealand”.
I.D. and reference courtesy of Don Herbison-Evans.
Further reading; http://lepidoptera.butterflyhouse.com.au/lyma/anart.html
Link to this post!
This exact photo matches in detail the photo I have in EAST TEXAS, U.S. The location in the info above said the locale was Australia, until 1999, then New Zealand. What’s this doing in East Texas, United States? I found this April 28th, 2013