Brush-tailed Phascogales are endemic to Australia, where they occur in the eastern portion of the country, and in western Kimberley and south-western Western Australia. They are not found on any islands in Western Australia.

The species is known from at least ten localities within northern Queensland and Cape York Peninsula, and they have most commonly been recorded around the Cooktown region (S. Rhind pers. comm.). There have been about 30 reports of phascogales since the 1970s, with records between 1976 and 1995 extending the known range south into northern Queensland by more than 500 km (S. Rhind pers. comm.). There are also records from the Rockhampton area (Ingram and Raven 1991). It was formerly widespread elsewhere in eastern and south-western Australia. The range has been reduced by about 50% since European settlement predominantly due to agricultural clearing, forestry practices, and deforestation associated with mining activities (Traill and Coats 1993; Rhind 2004). It is presumed to be extinct in South Australia.