It is common in shallow, coastal waters off northern Australia, Papua New Guinea, and the Solomon Islands.

A small brownish or grayish shark typically measuring 1.0–1.3 m (3.3–4.3 ft) long, this species has a short, blunt snout, oval eyes, and a relatively large second dorsal fin.

Small bony fishes are the main prey of the nervous shark, while crustaceans, molluscs, and snakes may also be eaten.

The details of its life history seem to vary depending on latitude—for example, the timing of the breeding season and the length of the gestation period.

He gave it the name cauta, meaning "cautious" in Latin, because of its skittish demeanor when confronted by people.

The type specimen consists of the preserved skin and teeth of a 92 cm (36 in) long female caught in Shark Bay, Western Australia.

[2][4] The dermal denticles are overlapping and bear three horizontal ridges (five in larger individuals) leading to marginal teeth.

[11][12] The diet of the nervous shark consists mainly of small teleost fishes (including silversides, smelt-whitings, wrasses, and grunters).

Crustaceans (including prawns, crabs, and mantis shrimps) and molluscs (predominantly cephalopods but also bivalves and gastropods) constitute secondary food sources.

In Shark Bay, mating occurs from late October to early November and birthing occurs around the same time the following year, following a gestation period of 11 months; this slower development likely reflects the cooler temperatures of Shark Bay.

The newborns are relatively large, measuring 35–40 cm (14–16 in) long, and are birthed in shallow nursery areas such as Herald Bight in Shark Bay.

The Australian nervous shark population does not appear to be threatened by fishing activities, and there the International Union for Conservation of Nature (IUCN) has assessed it as Least Concern.