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The Australian Labradoodle was a planned crossbreeding in the country of Australia in the 1980s. The goal of the Australian clubs was to create a new "breed" with the best attributes of the original breeds. Wally Conron's objective was to produce assistance dogs that do not shed hair (for people with allergies).

The Australian Labradoodle started out as a simple cross between the Labrador Retriever and Standard Poodle or Miniature Poodle and is still widely the case in North America. Australians, on the other hand, have taken the Labradoodle a few steps further. In mid-2004 it was announced that the Australian Labradoodle was not just a Labrador x Poodle cross but was a breed in its own right developed over many years with particular goals in mind.

To accomplish these goals, further development was done with parent breed infusions added to the already blooming Labrador x Poodle cross lines. The developers of the breed sought out the best way in which to compliment the Australian Labradoodle breed, and to develop the qualities that they find and love in these dogs. In 1997 the very first Australian Labradoodle Breed Standard was written which reflected these goals.

The Australian Labradoodle currently consists of 6 different breeds in its origin. The confirmed and approved parent breeds of the Australian Labradoodle are the Poodle (Standard, Miniature, Toy, Labrador Retriever, Irish Water Spaniel, Curly Coat Retriever, American Cocker Spaniel and English Cocker Spaniel.