This study investigated the use of the grass-tree, Xanthorrhoea semiplana F.Muell. (family Xanthorrhoeaceae), for shelter by Rattus fuscipes (southern bush rat) in South Australia. Eight bush rats were radio-tracked for 4–8 days each. To identify the understorey shelters available to each animal, surveys were conducted using point-intercept sampling at 2-m intervals along transect lines. Grass-tree density was calculated in each area used by the radio-tracked animals, and canopy thickness of grass-trees selected for refuge was assigned a score; the availability of other potential shelters was also calculated. The results indicated that (1) R. fuscipes preferentially selected grass-trees over other understorey shelter; (2) the grass-trees chosen had thick canopy covers; (3) areas with high grass-tree densities were preferred for cover over areas with fewer grass-trees; and (4) grass-trees provided dense cover and, therefore, concealed burrows and nest sites.