was studied using 12 mm increment cores taken from straight, vertical and dominant trees of three provenances from a plantation near Tarpina, South Australia. Tension wood fibre percentages were determined from microscopic examination of stained transverse sections and transverse shrinkage was measured from cores dried to 17% equilibrium moisture content. Shrinkage before and after steam reconditioning, as well as associated collapse, were related to the proportions of tension wood. Contrary to normal expectations, high levels of tension wood produced greater shrinkage in the sapwood than in the heartwood in material from all provenances. Collapse was significantly greater in material from the Jeeralang and Western Tasmania provenances than in the King Island provenance. While the mean proportion of tension wood was highest (4.3%) in material from Jeeralang and least from King Island (2.4%), no significant difference among the three provenances was evident for proportions of tension wood fibres when considering only the last year's growth. Variation in the width of the gelatinous layer (G-layer) was recorded for the tension wood fibres. Fibres with thin walled G-layers were usually scattered among normal fibres and collapsed regions containing such material generally recovered after reconditioning. On the other hand, regions containing the more typical tension wood fibres, with thick walled G-layers, exhibited high levels of shrinkage and collapse, and poor recovery after reconditioning.