Today I found a peewee nest in the yard, with two large chicks in it (photo on flickr). A couple of months ago I observed the adults collecting mud for a nest, but couldn't locate the nest before leaving for the desert. The nest is in the same tree the the resident magpies nest in every year, but I suppose the magpies didn't object to dual-occupancy.
On a slightly related note, yesterday a red wattlebird was furiously harassing and attacking the choughs that often visit the yard. My assumption was that the wattlebird innately defends against any large black bird (eg ravens, currawongs), and that it may have a nest somewhere nearby. Is anyone able to describe to me what a wattlebird nest looks like/where they like to nest, so that I can attempt to find the nest?