His father, born in Scotland, was a wealthy grazier with significant pastoral holdings and married the daughter of his business partner George Armytage.

[1] Fairbairn was educated at Wesley College, Melbourne, and Geelong Grammar School, where he took up rowing and was regarded a good Australian rules footballer and cricketer.

[3] Five of Fairbairn's brothers, including future Australian MP George, had attended Jesus College, Cambridge, and Steve followed them to read Law from 1882.

In Jesus College crews, he rowed to success in the Cambridge University bumps races and Henley Royal Regatta, where they won the 1885 Grand Challenge Cup.

He also won the hammer throwing and putting the weight at the Freshmen's sports[2] for Jesus College.

Fairbairn's observations led him to develop a revolutionary rowing style featuring concurrent use of the legs, back and arms at the catch.

Fairbairn was a strong believer in the benefits of distance training; part of his philosophy was that "mileage makes champions".

A bronze bust of Fairbairn by George Drinkwater is the winner's trophy for the Head of the River Race.

Their eldest son Ian Fairbairn competed as a rower in the 1924 Summer Olympics and was a financier who originated the unit trust.