Founded in 1952 but not awarded until 1956, Australia's Picture Book of the Year is awarded to the author and illustrator for outstanding contribution. Titles published the previous year are considered. The Book of the Year winners are announced in August to coincide with Children's Book Week. It allows the Children's Book Council of Australia (CBCA) to acknowledge Australian authors and illustrators, and to highlight the need for quality literature for children and young people.

Sheila Hawkins was the first award recipient for Wish and the Magic Nut (House of John Sands, 1956). It was written by Peggy Brands.