Kelly was born in Dunedin, New Zealand[3] and educated at St Dominic's College.

She moved to Sydney, Australia and was employed by The Bulletin in 1917,[7] which also published some of her war poetry.

[11] Kelly was a founding member of the Society of Women Writers[12] and served as president in 1941–43.

[13][14] The first play she wrote was Love, performed by the Sydney University Dramatic Society in October 1921.

[16] Her 1931 play, The Rose, was performed in a testimonial to Steele Rudd, along with works by Vance Palmer, Louis Esson, Carrie Tennant and Basil Garstang.