Terana caerulea

Terana caerulea (or Terana coerulea), commonly known as the cobalt blue crust or paint fungus or velvet blue spread, is a saprobic crust fungus in the family Phanerochaetaceae. Usually found in warm, damp hardwood forests on the undersides of fallen logs and branches of deciduous trees, this unique fungus has been described as "blue velvet on a stick". It has been found at the Upper Allyn RIver, NSW on two occasions: in August 2015 and in April 2018.