Prior to 2001, only 20 specimens of the bluegrey carpetshark had been recorded. The rarity, limited reproductive capacity, and restricted geographic range of this species makes it very vulnerable to any threats (2).
The bluegrey carpetshark inhabits waters that are fished intensively and used heavily by humans. Therefore habitat degradation is a major threat and is likely to reduce the already small area in which this shark occurs (5). There are plans for large developments in Moreton Bay, a key site for the bluegrey carpetshark, which are likely to affect nearshore marine habitats. Pollution from marine and land sources are also a potential threat to the species (2).
The bluegrey carpetshark is also caught as bycatch in trawl fisheries. When this occurs, the shark is often sold to the private aquarium trade (1).