The inheritance of coat colour in the Australian Cattle Dog (and in his bob-tailed cousin, the Australian Stumpy Tail Cattle Dog) is complex.  The inheritance of colour in both breeds is described by Dr Helen Hewson-Fruend in A Dog Called Blue.  Miscolour (coat colour that is unacceptable in terms of the Breed Standard) occurs in both breeds.  In the ACD the most common miscolours appear to be: chocolate; cream; and, white.

Miscoloured ACDs should not, of course be used for breeding.  However, it is evident that many excellent ACDs carry miscolour.  Miscolour carriers should not be excluded from breeding if they are otherwise excellent.

Coat colour genes are not breed specific.  The 'b' and 'e' genes, for example, are associated with chocolate and cream miscolour in the ACD, and these genes are also found in the Labrador Retriever.  VetGen (USA) has developed a DNA test for Labradors that can identify carriers of chocolate and/or cream.  VetGen is now accepting ACDs for colour testing.  Not many ACDs have been colour tested and the test cannot yet be regarded as standardised for the breed.  So far, however, all test results have been consistent with expectations and Noreen Clark, who is evaluating all results in association with VetGen, is confident that the Labrador tests are valid for ACDs.

Cream (and perhaps chocolate) miscolours are known to exist in some of the breed lines behind Tirlta but colour testing  at Tirlta Kennels ensures that miscolour carriers are not placed on the ANKC main register.