Colonies of this moss often develop an abundance of spore capsules that are held atop twisted stems. Here (http://www.cpbr.gov.au/bryophyte/photos-captions/funaria-hygrometrica-MIOB.html) you see a group of plants with very immature capsules and here (http://www.cpbr.gov.au/bryophyte/photos-captions/funaria-hygrometrica-sporophyte.html) some more advanced capsules (the brown ones most advanced). Small colonies of this species are common but large and very dense colonies occur in burnt areas (e.g. http://www.cpbr.gov.au/bryophyte/photos-captions/fire-moss-03-12-11.html). While this (http://www.cpbr.gov.au/bryophyte/photos-captions/fire-weddin-mtn-2007-a.html) is a drawn-back photo (and so lacks identifying detail) I wouldn't be surprised if much of this moss cover was Funaria hygrometrica.
For now I’m puzzled as to why the term ’water moss’ is associated with Funaria hygrometrica, given that this species is not tied to water-prone sites. The species is found worldwide and the usage ‘water moss’ is not peculiar to Canberra Nature Map. Note that there are also other moss species referred to as ‘water moss’ (some of which, but not all, are aquatic or semi-aquatic). I have seen some sources refer to Funaria hygrometrica ‘fire moss’ or ‘bonfire moss’ That’s more appropriate, though there are also other species that colonize burnt sites (and as I said earlier, Funaria hygrometrica is not confined to burnt sites).
I have just realized that I recorded Funaria hygrometrica before in the woodland and that it is quite widespread on the mowed walking tracks. I suspect that it is just not easily seen in the longer grassy areas.