Island Records Australia is an Australian record label that was launched in 2007 by Michael Taylor (now serving as managing director, Universal Music Australia). It is part of the Universal Music Group and is the Australian variant of Island Records. Taylor describes "Island Australia (as) a home for artists who cut their own path, who start from the left, and who, in time, come into the mainstream on their own artistic terms". Island Records Australia is now headed by Nicole Richards.

Island Records Australia is the label home for established artists Dean Lewis, Tame Impala, Matt Corby, Broods, Hilltop Hoods, Havana Brown, and Vera Blue, along with emerging artists Baker Boy, Eliott, Winterbourne, Running Touch and Peach PRC.

In 2020, Island Records Australia had the #1 streaming Australian artist with Hilltop Hoods, won 5x ARIAs including Album of the Year with Tame Impala, and hit 5 billion streams with Dean Lewis' debut album, A Place We Knew. In March 2020, during the COVID-19 lockdown, Island Records Australia launched their Live From The Island livestreaming series where a number of artists on the roster performed their music live online for fans, and hosted trivia nights and live painting sessions.