Rascal, a small brown Pomeranian, is believed to have been stolen from its owners` property in Nhill, a town with a population of about 2000.
The owner of the dog was mowing the lawn when he stumbled on the rear half of his mutilated pet, which had been thrown back over the fence.
A local woman, who did not wish to be named, said the shocking attack was the talk of the town and had put fear into locals.
"For somebody to be able to do that to a dog, it just sends general fear that we have somebody in the community that could do that," the woman said on Thursday.
"It`s absolutely disgraceful that it could happen in a community like ours. It`s only a small town.
"To find it happening in your own backyard, it`s frightening.
"It`s certainly got the town fearing."
Nhill Senior Constable Les Newton said the family had two small children - a toddler and a baby - and had been deeply distressed by the mutilation of their pet.
Only half of the dog`s body has been found, he said, and he appealed for anyone with information to contact police.
"They are very upset," said Snr Const Newton.
He said the incident was "very worrying" for the community and the family did not know why they would be targeted.
"We`ve never had anything like this happen in the town before," he said.
The dog was stolen at some time last Friday night and its remains were found on Saturday morning.
Another local, who did not wish to be identified, said the family had an idea about who was responsible for the attack because they had made a threat against the dog in the past.
RSPCA Victoria chief inspector Greg Boland said whoever was responsible for the attack could face a fine of $25,000 and a two-year jail term.
He said the attack was at the high end of the animal cruelty spectrum and he had never heard of a similar case in Australia.
"It`s what I would consider to be an obscene case of animal cruelty," he said.
"It beggars belief that somebody could do that sort of thing and if they could do that to a defenceless animal, who knows what they are capable of."
(U.A050/H-AK)
Editor: Priyambodo RH
Copyright © ANTARA 2011
