The Australian Shepherd was developed for versatile work on farms and ranches across the United States. This required a dog who could handle a variety of livestock in both the open range and in pens. It also required a dog who could protect his family and livestock when necessary. This breed's origin should always be kept in consideration. This is a breed meant to be a working stockdog.

The Australian Shepherd should be calm and confident but can be aloof in its initial meetings with strangers and reserved in new situations. A reserved dog might stand stoically, without expression or interaction during an initial meeting. This should not be mistaken for fear or shyness.

Shrinking away from humans, new objects or being easily frightened by everyday motion, noises and situations are indications of shyness. Any display of unwarranted aggression is not to be tolerated.