The sandhill dunnart is subject to predation by introduced species such as foxes and feral cats and dogs. There is also the problem of habitat loss, and changed fire regimes since the introduction of European settlement.
In its native habitat, the sandhill dunnart is only known on the Eyre Peninsula of South Australia, in arid dune areas which are well-covered by spinifex, a low, wiry desert grass of Australia. Because of this, its habitat may be affected by bushfires.
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