Cheese Cloth or gauze bandages. Simply pull it apart to the desired shape, and either paint it off the model, or glue it to the model by soaking it in diluted white glue and paint it on the model. You can also add some foliage to it by sprinkling oregano or tea leaves onto it while the glue is still wet. It is quite effective.
I used the Verlinden camo netting on this one, but it was given to me. Next time I do it, I am following Heavy Arty’s advice and getting the cheese cloth. Much cheaper and it looks the same, except you need to paint it. Also, the foliage I added was some dried stuff from the local craft store (Caspia Basil- anyplace that has dried flowers and such for centerpieces.). See my M10 build for a little more detail on it.
I use cheesecloth here on my halftrack. Just like HeavyArty mentioned, you need to dip it in some water/white glue mixture and paint the cheesecloth as well. I think it turns out pretty realistic looking. I think the cheesecloth was $5-$6 at the local grocery store, but you get a lot of it.
darson,
Not sure what your options are in Autralia, but here in the states, I bought a yard (meter) at Wal-Mart for about $0.50 or $0.75.
It was in the fabric section.
Joe