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The Australian Government's Threat Abatement Plan 2008 for competition and land degradation by rabbits says: 

"...feral rabbits are listed as a key threatening process under the EPBC Act and pose a threat to a large number of native species...although impacts are not restricted to these species"  ... and lists over 150 threatened species and critical habitat that may be threatened by rabbit competition and land degradation.

RMAG members have estimated that damage to agriculture is in the order of at least $206 million per annum. Properties affected by rabbit damage to crops and ground cover also suffer from resulting environmental damage.

 Rabbits cause damage to the environment because of their:

• grazing (eating) of vegetation, both agricultural and native grasses, shrubs and trees

• habit of burrowing and making warrens (underground homes) which cause soil erosions and damage soil structure

• impacts on drought affected land – eating out vegetation that might otherwise help keep moisture in soils, and disturbing ground cover which leads to erosion by wind and water

• competing with and adding to the grazing pressure of all other animals (native and agricultural stock)

• eating out or otherwise disturbing the habitat (i.e. mainly plant shelter) of native animals

• enticing the predators of rabbits (e.g. feral cats and foxes) to follow the spread of rabbits across Australia