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Like other herding breeds, these dogs excel at many dog sports, especially herding also known as stockdog, dog agility, dock diving/dock jumping, obedience, rally, tracking, disc, and flyball. The name "lethal white" is a misnomer, as this genetic condition is not lethal to the dogs; it is often the breeder who is lethal to the pups by culling them immediately after birth. The Australian Shepherd is one of the breeds more commonly affected by hereditary cataracts. The Australian Shepherd is one of the more commonly affected breeds for an autosomal recessive mutation of the MDR1 gene. A 2024 UK study found a median life expectancy of 13.7 years based on a sample of 62 deaths, which was above the median of 12.7 years for purebreeds and 12 years for crossbreeds. A very active breed, the Australian Shepherd is known to become destructive if it does not receive adequate exercise. The modern breed is predominantly bred for pets; despite this, many retain a strong herding instinct and it is not uncommon for companion dogs of the breed to try to herd children or other pets.

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