The dingo's habitat ranges from deserts to grasslands and the edges of forests. Dingoes will normally make their dens in deserted rabbit holes and hollow logs close to an essential supply of water.he dingo is suspected to have caused the extinction of the thylacine, the Tasmanian devil and the Tasmanian nativehen from mainland Australia, since a correlation in space and time is found between the arrival of the dingo and the extinctions of these species.