How old should my dog be before putting him outside

Question
My son got an Australian Shepherd for Christmas from his girlfriend and I am left to raise it with no knowledge in the subject.  He is 3 months old and has been inside with us since December 22nd.  We have a small house and he doesn't have a lot of room to get his energy out and we also work full time jobs so he was having to be crated most of the day and he hates it. He has become increasing destructive, i.e. biting, tearing holes in our clothes, furniture, SKIN. I read that if not properly exercised some dogs do this and my husband has had all he can stand and wants to give him away but I love this puppy and cry at the thought so I purchased a dog house and have put in on my patio.  He has a leash and is tethered to a yard stake so he has plenty of room to roam around the yard.  Tonight is his first night out and he is periodically barking, barking, barking at the back door and then he retreats to his house for a while before beginning again so I called a friend of mine that has animals and she said that I can't put him outside b/c of his age.  I am in a terrible position.  My husband says if he can't be an outside dog we have to give him away and my friend says if he can't come inside he may get sick and die.  Please help me make the right choice for my puppy, and if he can remain outside, what should I do about the barking?  I have neighbors and I fear if this continues for very long they may call in a complaint.

Answer
This dog needs socialization with other puppies, training, and environmental enrichment, or you will not only be giving him away, you may be euthanizing him.  An isolated Aussie is a dangerous Aussie, and this one is at the very end of his optimal socialization period already!!!!  Please read the AVSAB statement on puppy socialization at their website.  
Also, read:http://www.k9station.com/dont_buy.htm
You cannot put an Aussie outdoors away from its family!!!!  This dog is not for you, and I suggest that you contact Australian Shepherd Rescue and Placement Helpline for assistance if you cannot alter your lifestyle immediately to put this little guy in a positive reinforcement puppy class, start taking him everywhere with you, getting him some interactive toys, stop expecting him to act like a Golden Retriever, and realize that allowing your son to use you in this way was not ok!  This is NOT, NOT, NOT an outdoor breed!!!!!!!!!!!!! While they do work outdoors, it is horrible to keep them there, isolated.  Please give this dog to someone who can handle him.  Call every Australian Shepherd rescue you can.  He is still salvageable but you only have a week or two left before he probably won't be.  That's because these guys can become aggressive if they are unsocialized (meaning off leash play with lots of other dogs, meeting many, many new people every day), or underexercised and understimulated mentally.