Economist H. C. Coombs became the first chairman of the body, while the other members included radio quizmaster Barry Jones, school principal Betty Archdale, magazine editor and state Liberal MP Peter Coleman, socialite Virginia Erwin (wife of federal Liberal MP Dudley Erwin), architect Karl Langer, author Geoffrey Dutton, theatre producer Jeana Bradley, arts patron Mary Houghton, and retired academic Kay Masterman.

[5] In December 1969, Coombs announced a new formula for grants whereby organisations could only receive a maximum of two-thirds of their budget from the council.

[6] In February 1973, Prime Minister Gough Whitlam announced a new structure for the council whereby funding recommendations would be made by seven autonomous boards for different areas of the arts.

Dick Roughsey was the inaugural head of the board, followed by Yolngu artist and activist Wandjuk Marika.

[11] When created, AAB had similar aims as the Aboriginal Publications Foundation (APF), leading to some duplication of work by the two bodies.

[further explanation needed] In early 2014 federal Arts Minister George Brandis and Minister for Communications Malcolm Turnbull told artists at the Sydney Biennale that they were ungrateful and selfish to protest about the role of Transfield in the Nauru immigration detention centre.

NPEA in turn was criticised by many artists and arts organisations for lacking the "arms-length" funding principles that had applied to the relationship between the government and Australia Council since its inception in the 1970s.

[26] Following Malcolm Turnbull's successful spill of the leadership of the Liberal party in September 2015, Brandis was replaced as arts minister by Mitch Fifield.

[33] The Music Australia Council was appointed by Arts Minister Tony Burke in August 2023, consisting of eight members.

[36] Still to follow (not included in the 2023 legislation) are the First Nations-led Board and Writers Australia, as outlined in the National Cultural Policy[33] and the "Corporate Plan 2023–27".

[38][39][40] This is the final piece of legislation in establishing all the functions of Creative Australia under the National Cultural Policy, Revive.

[36] The Creative Workplaces council is headed by Victorian human rights lawyer and commissioner Kate Jenkins.

[41] It will receive over A$26 million in funding over three years from 2025 to 2026 "to strengthen the Australian literature sector and develop further markets and audiences", at home and internationally.

[54] As of 2021[update] there were eight categories for achievement in various types of arts, called:[55] Australia Council Fellowships, worth A$80,000, "support creative activity and career development for mid-career and established artists".

Past fellowship holders include: Hetti Perkins (2018), Lisa Maza (2017), Vicki Couzens (2016), Brenda L Croft (2015) and Reko Rennie (2015).

Following adverse media coverage, the council suspended the funding hours before the first performance on 19 August, and formally rescinded the grant on 21 September 2020.

The council stated that the withdrawal of the grant was not due to negative media coverage, but followed legal advice about the organisation's liabilities if pregnancy resulted.

Writer and social commentator Ben Eltham wrote that the council's actions might have a chilling effect on performance art in Australia.