Australian musicians, composers and songwriters received a record-breaking $534.3 million in royalty payments over the past 12 months.
Digital sources like streaming accounted for more than a third of total royalties earned in 2021-22, the latest financial report from music rights managers APRA AMCOS said.
The organisation helps ensure those in the Australian music industry are paid when their music is played or copied across the country or internationally.
More music creators earned royalties in Australia in the past 12 months, up 19.5 per cent on last year's figures, while a further 23,532 people started receiving international royalties.
While digital is taking over as the leading source of royalties, more traditional means like public performances, television and radio still accounted for about a third of total revenue.
"COVID-19 highlighted the dichotomy in the contemporary music industry globally," APRA AMCOS chief executive Dean Ormston said.
"(It's) an increasingly digital business that continues a trajectory of strong growth. But for many music creators, it doesn't generate as meaningful a return as live music performance."
More than 3000 Australians songwriters and composers received their share of $1.5m in compensation earlier this year for shows cancelled due to the COVID-19 pandemic.
While concerts and festivals revenue fell short of the forecast figures, royalty payments for live performances began to bounce back in May and June.
With the music industry continuing to evolve in the wake of COVID-19 and digital streaming, Mr Ormston said now was the time to ensure Australian music creators were supported.
"In Australia and New Zealand, we have two music-loving nations that both have the potential to become global music powerhouses and ultimately net exporters of music," he said.
"But to achieve this, it is essential to drive strategies to create live performance opportunities, a greater presence of local content across all media and effective cross-government portfolio policy development."
APRA is one of 18 music industry groups calling for a federal agency to deal with skills development, exports, local content incentives, insurance and intellectual property.
The agency would also invest in First Nations music and work by young musicians.
