Dingoes do cross with dogs, yes. Certain people here in Victoria keep Dingoes of pure blood though, and this boy is one of them. They also have them at a Zoo down near Halls Gap, about 30 miles from us. Dingoes are cautious and stealthy and there is nothing worse than a cattle dog that will sneak around behind you to bite. Okay, they are heelers BUT I've known a couple of very Dingo-ish red ones that would slink around, making sure to keep out of your line of vision, before rushing in to bite. I've always liked my ACDs to stand quietly facing a visitor, I just wouldn't entertain the idea of owning the other sort. Here is a photo of one a friend owned, below. My friend was told she should not bother showing this one as it had too much Dingo in it, or words to that effect.
The reason they introduced Dingo was to quieten the breed down. Dingoes don't bark, they work silently, and will howl but that's it. Back when I first got into cattle dogs, you could never trust anyone who bred reds, but also Dingoes, or had a Dingo tied under a tree somewhere. Chances are they thought the cattle dogs were getting noisy. LOL. Nowadays they ARE noisy, so noisy that people accept what is now called the cattle dog shriek. Pity we can't sneak the Dingo back in again. My first red guy had Dingo closer up than he should have, we knew that for sure, a breeder admitted he crossed them, and that dog would sleep on the roof of his kennel, rather than in it. The dingo likes to be up high too. And Susie, in that first photo, I always thought she was feral, anything she could get her teeth into, like birds or big blue tongue lizards, were immediately chomped hard. The cattle dog isn't a washed out version, it actually might be easier to live with Dingoes than cattle dogs. Both have an independent streak, Dingoes might not be as dog aggressive as some cattle dogs though.