The Southern Hairy-nosed Wombat was classified as Near Threatened in its previous assessment. This was based on long term data (>30 years) available on a population in the Murraylands, South Australia. This population crashed (80% decline) after the millennium drought, and has failed to recover. Hence, it was thought prudent at the time, as no other information was available on the species elsewhere across its distribution, to list it as Near Threatened. The grounds for listing were that it had declined historically in population size, number of subpopulations and area of occupancy, that many subpopulations are now isolated and may be non-viable, and that it faces a wide range of threats. A subsequent study has reported that in a major component of its range (Gawler Ranges, South Australia), the population size in 2016 was ca. 240,000 individuals, a very marked increase from the ca. 14,000 in 1988, a timespan of about three generations. Another recent study indicated likely population increase in the Western Australia component of its range. Although it is very difficult to accurately estimate abundance in this species, the decline in a significant competitor, the rabbit, associated with myxomatosis and RHDV viruses and reported expansions of the species range around the Gawler Ranges and into Western Australia, indicate a population increase. Given this new information the species is now not likely that it approaches threshold levels for criterion A. It does not fit criterion B, because its area of occupancy (AOO) is at least 2,000 km², and its extent of occurrence (EOO) ca. 340,000 km². It does not fit criteria C or D because its population size is more than 300,000 individuals. The species is now listed as Least Concern.

The Southern Hairy-nosed Wombat is endemic to Australia. It occurs in semi-arid areas from south-eastern South Australia to south-eastern Western Australia (the Nullarbor Plain area) (Swinbourne et al. 2017). Its range formerly extended east to the Riverina in New South Wales (Swinbourne et al. 2019).

It is now patchily distributed across this extensive range. Important (but not necessarily large) subpopulations include the Nullarbor Plain, Gawler Ranges, the Murray Lands, Yorke and Eyre Peninsulas (South Australia) (Swinbourne et al. 2017). There are relatively recent records of a few individuals in far southwestern New South Wales  (NSW Government, Environment and Heritage 1997); and a record of one individual in  far north-western Victoria (Ned’s Corner, a Trust for Nature Victoria sanctuary). 
 
There is a subpopulation on Wedge Island (South Australia), introduced in 1971 (Ostendorf et al. 2016).

The overall population size of Southern Hairy-nosed Wombats is not well resolved, with population trends not known for all subpopulations.

Approximately 80% of the Southern Hairy-nosed Wombat distribution occurs on grazing or cropping land, much of which is degraded. Wombat body condition on degraded native pasture / exotic weed species is poorer than on intact native pasture (Taggart et al. 2024) placing them at greater risk from drought. In many of these areas (e.g. Murray Lands and Eyre Peninsula), the species is considered ‘over-abundant’ and in significant conflict with farming communities (O’Brien et al. 2020); in other parts (e.g. Yorke Peninsula), subpopulations are small, few and scattered

In 2008, Taggart and Robinson provided, now dated, estimates for parts of its range, including 50,000 to 100,000 individuals in the South Australia portion of the Nullarbor Plain; 10,000 - 15,000 individuals in the Murray Lands; about 700 wombats scattered across the Yorke Peninsula (Sparrow 2009)  and at least 3500 individuals on the Eyre Peninsulas (including about 100 individuals at Wool Bay, about 400 individuals at Port Victoria, about 50 - 100 near Kadina, about 3,000 individuals at Elliston, and about 100 at Small Kellidie); and 100 - 1,000 around Lake Everard.

Swinbourne et al. (2019) used satellite imagery and ground surveys to estimate the population size of this species in the Gawler Ranges area (South Australia) to be 240,095 individuals (with confidence limits of 149,051 to 311,595), a dramatic increase from the population of 14,373 in this region in 1988. In the Western Australian portion of its range (far west of the Nullarbor Plain), a recent study estimated the population to be about 90,000 individuals (Swinbourne et al. 2021).  Collectively, these subpopulation estimates tally to about 400,000 individuals .

Getting accurate and reliable estimates of Southern Hairy-nosed Wombat population size remotely is very difficult due to their nocturnal and fossorial habits. This is further complicated as abundance can vary with soil type, individuals can share burrows and warrens, animals can remain underground for more than a week, and each wombat can use multiple warrens within their home range (Finlayson et al. 2005, 2010). The only long-term study of the species (1993 – present) conducted at Kooloola Station in the Murraylands (Taggart et al. 2020) has seen an 80% decline in wombat abundance associated with dry years and drought. This population has not recovered. Dry times and drought are the greatest threat to this species (Taggart et al. 2020, Kleemann et al. 2024) impacting body condition, and as a consequence, the proportion of females breeding, weaning success and survival of all co-horts, particularly juveniles and sub-adults. Wombat body condition has declined significantly across the 30 years of this study (Kleemann et al. 2024).

Preliminary modelling suggests that this species is at high risk from climate related changes and associated increases in drought frequency and duration (Marshall et al. 2018), with the CSIRO predicting an increase in such events across the Southern Hairy-nosed Wombat distribution in the next 70 years (Hope et al. 2015, Timbal et al. 2015, Watterson et al. 2015). Population numbers and trends are thus highly responsive to rainfall conditions, with prolonged dry times and drought causing population declines (Kleemann et al. 2024)

Despite many unknowns and the risk of climate related impacts on this species, particularly in areas of degraded native pasture, the large increase in the Gawler Ranges population over the period 1988 to 2016, the increase observed in the Western Australian population recently (Swinbourne et al. 2021) and the decline in rabbits, a significant competitor of wombats across its range, is likely to mean that the overall population size has increased over a 3-genertion period (27-36 years) (Swinbourne et al. 2019).

The Southern Hairy-nosed Wombat is found in semi-arid areas of grassland, open plains, shrublands, savanna, and open woodland. Animals live in colonies within extensive burrow systems (warrens). Warrens may be comprised of up to 100 burrows, and contain multiple animals. Each wombat will use between one and 10 warrens within their home range (Finlayson et al. 2005, 2010). The species is long-lived (reaching more than 15 years in the wild) (Taggart and Temple-Smith 2023), and has a low rate of recruitment ~2 young every 3 non drought years. Females are monogamous, and they produce a single young that lives in the pouch for six to seven months and is weaned after about a year (Taggart and Temple-Smith 2023). In drought years reproduction may cease altogether and three consecutive years of good rainfall is needed for there to be an increase in a population (Taggart and Temple-Smith 2023). Animals become sexually mature at about 3 years of age (Taggart and Temple-Smith 2023).

Historically much of the habitat of the Southern Hairy-nosed Wombat was cleared or modified for cropping and/or grazing purposes. Even today large parts of its range (~80%) are designated for agricultural or pastoral use. Grain farmers have little tolerance for the species due to grazing impacts on crops and burrowing impacts on cropping infrastructure (O’Brien 2019; O’Brien et al. 2021). Competition by sheep and the invasive European rabbits (Oryctolagus cuniculus), have also lead to significant habitat degradation and direct competition with wombats (Taggart and Temple-Smith 2023, Swinbourne et al. 2017).

Sarcoptic mange is a threat to Southern Hairy-nosed Wombats in the Murray Lands subpopulation, killing 80-90 percent of affected animals within colonies there (Ruykys et al. 2009, Death et al. 2011). The mange mite however does not appear to survive across the dry summer and autumn months, and so outbreaks are short lived.

Wells (1995) noted that the seasonal pattern of winter / spring germination of introduced annual grasses and weed species does not coincide with the weaning period of wombat young, leading to high infant mortality.

Dry times and drought however, are the major threat to this species (Gaughwin et al. 1984, Taggart et al. 2020, Kleemann et al. 2024), especially for successful reproduction (the species needs a minimum of three years without drought to increase in number and reproduction ceases during drought years), and ingestion of toxic weeds (Woolford et al. 2014). The incidence, severity, extent and duration of drought is likely to increase in future years, associated with climate change.

In parts of the range, it is considered as a pest and management attempts to reduce population size (Sparrow 2009, O’Brien et al. 2020).

Some hunting by First Nations people; ad in some areas is considered as a pest and managed to reduce population size (O'Brien et al. 2012).

This species occurs predominantly on private agricultural / pastoral land, and is found on few protected areas in South Australia. There is a need to reduce inbreeding in the small isolated Yorke Peninsula colonies, likely through translocation of individuals.

The species is not listed as threatened under Australian legislation.