Gouldian Finches occur in tropical northern Australia from about Derby to the eastern side of the Gulf of Carpentaria to around the area of Charters Towers. This species appears to be migratory throughout its range, moving more southerly in the rainy season and reappearing in the northern regions for the dry months. The numbers of Gouldian Finches have drastically decreased since the onset of the twentieth century, and they are very rarely found east of the Gulf of Carpentaria. The Gouldian Finches natural habitat is the tropical savannah woodland. They select open plains with dispersed groups of tall trees, or the fringes of mangroves and thickets, and tend to always be near water.
Gouldian Finches are apprehensive birds generally evading populated areas.
A relatively quiet bird, the Gouldian has a high pitched call that can not be heard over long distances. They have hisses, clicks and weakened whines for their songs. There is an occasional sharp modification of the normal call when startled. Additionally, there is an intimate call when in the nest that sounds like a foundling's wiwiwiwi . During the courtship ritual the male commences with beak-wiping, bobbing, showing off his brilliant colors by ruffling his feathers and holding his body and tail erect.