The hindquarters are the drive train of the Australian Shepherd and require strength and balanced angulation to propel the dog forward. They should be strong and well-muscled and the approximate width of the shoulders.
The pelvis and the femur meet an an approximate right angle matching that of the shoulder blade to humerus angle of the forequarters.

The stifle should carry a moderate angle whose bend is clearly visible without being overly pronounced.

The forequarters and hindquarters must be in balance with each other for the purpose of correct gait. Although correct angulation is called for, balanced angulation, either over or under is preferable to lack of front to rear balance. Lack of balance in angulation from front to rear is faulted because it interferes with proper, effortless gait and quickly tires the dog.

Lack of rear angulation results in a stiff, pendulum action lacking in the powerful drive necessary to propel the Australian Shepherd forward effortlessly. This is the more common fault in the breed ring today.

The greater the rear angulation, the further back the dog's rear paw will be when standing with hocks perpendicular to the ground. A dog with excessive rear angulation will have greater difficulty supporting its weight and will exhibit a reduction in drive and power.

The hocks joint shows a moderate, well defined bend and the metatarsi, (portions of the hind leg, from hock to heel), are short, straight and perpendicular to the ground when viewed from the side or rear.

When viewed from the rear, the legs and hocks are parallel to each other.  Hind feet should toe neither in nor out but point directly forward. Hocks that converge inward (cowhocks) or deviate outward (open hocks) are incorrect and should be faulted.

The feet are oval shaped, tight fitting with well arched toes for additional shock absorption. Nails should be short.