The key difference between desiccated coconut and shredded coconut is texture and moisture content. Desiccated coconut is finer and drier, while shredded coconut is cut into longer strands, giving recipes more chew, texture, and visible coconut.
Both are useful in Australian baking and cooking, but they are not always perfect swaps. The right choice depends on whether you want coconut to blend into the recipe or stand out.