History 
The Australian Terrier (or "Aussie") - not to be confused with the Australian Shepherd, the Australian Cattle Dog, or the Australian Silky (known as the Silky Terrier in the United States) - was the first Australian-bred dog ever to be recognized and shown in Australia. Persistent efforts over the years produced an ideal terrier to suit Australian conditions and resulted in a rugged, hard-bitten, fearless dog that was equally at home - indoors or out.
Beginning in Tasmania, the earliest efforts at breeding a native rough-coated terrier soon spread to Victoria on the mainland, and then on to the other Australian states. When the Australians needed help controlling rodents on the waterfront, in the gold mines, and on the sheep stations - or to herd sheep and to serve as watchdogs, they began breeding these small terriers from the rough-coated , short-legged dogs from Britain that originally came with the first sailing ships to the Land Down Under.
The Australian Terrier, one of the smallest of the working terriers, was bred to be both a helper and companion in rough times and terrain. A native dog (known as the "rough-coated terrier") and a close relative of the old Scotch dog of Great Britain (not to be confused with the present-day Scottish Terrier) are believed to have been cross-bred with a number of other breeds of British stock to produce the fast, sturdy, weather-resistant and fearless little dog that the settlers needed as they expanded the frontiers of their country. The breeds chosen for cross-breeding were selected to promote specific desired traits.
Although there are differences among writers of the histories of the breed, there is a consensus of opinion that the breeds used included the precursor of the Dandie Dinmont Terrier, the Skye, the Yorkshire, and the old Black and Tan Terrier.
Temperament
The Australian Terrier is a tough, cheeky little fellow with the courage of a much larger dog. It has boundless energy and is very loyal, showing great affection for its immediate family and its extraordinary intelligence makes it a responsive and very protective companion. It is an alert, amusing and loveable little dog. Spirited, curious, and self-assured, it has very keen hearing and eyesight, so it makes an excellent watchdog. It wants to please its master and is more easily obedience trained than most other terriers. This breed is not snappish, likes to bark and is very good with children provided they do not tease the dog. They are friendly with other dogs as well as other pets. However they may chase small animals outside the house and should be in a safe area at all times. Strangers, on the other hand, may find these dogs unfriendly although they are really not excessively suspicious. This is a good dog to travel with. The training of the Australian Terrier needs to be strict because this self-confident dog prefers to follow its own ideas, although they learn very quickly. The Australian Terrier is a very economical breed to feed.
Health Problems
The Australian Terrier is a hardy, healthy breed. It is long lived and free of any major hereditary diseases.
Living Conditions
The Australian Terrier is good for apartment living. It is fairly active indoors and will do okay without a yard provided it is taken for walks on a lead. They should not be allowed to roam free because they have a tendency to chase.