Old kids movie about a dragon

[Donavon99]

I need help finding an old kids movie, here's what we remember.
A dragon crashes into a kids playhouse and eats catfood with knitting needles. He takes one of his scales and puts it into a bucket of water to create a portal. I think there was also a talking cat and dog and maybe a talking tree at the end. I'm pretty sure it was from around the 90's. The kids may have had australian accents but we can't really remember. It was a live action/CGI type movie.
Again any help is very much appreciated, thank you.

[Lord-Xanthor]

Sounds like one of the Puff the Magic dragon episode's.