From Gawler in country South Australia, Butler only took up football when he was a teenager, having previously played under-16 soccer for his state. He played junior football for the South Gawler Football Club (subsequently becoming the first South Gawler player in the AFL), and then for underage Central District Football Club teams. A member of the AIS/AFL Academy, Butler played for South Australia at the AFL Under 18 Championships in both 2002 and 2003, and also won a reserves SANFL premiership with Central District in the latter season. He went on to be drafted by West Coast with the 20th pick in the 2003 National Draft.