Contemporary Indigenous Australian art is the modern art work produced by Indigenous Australians, that is, Aboriginal Australians and Torres Strait Islander people. It is generally regarded as beginning in 1971 with a painting movement that started at Papunya, northwest of Alice Springs, Northern Territory, involving Aboriginal artists such as Clifford Possum Tjapaltjarri and Kaapa Tjampitjinpa, and facilitated by white Australian teacher and art worker Geoffrey Bardon. The movement spawned widespread interest across rural and remote Aboriginal Australia in creating art, while contemporary Indigenous art of a different nature also emerged in urban centres; together they have become central to Australian art. Indigenous art centres have fostered the emergence of the contemporary art movement, and as of 2010 were estimated to represent over 5000 artists, mostly in Australia's north and west.

Contemporary Indigenous artists have won many of Australia's most prominent art prizes. The Wynne Prize has been won by Indigenous artists on at least three occasions, the Blake Prize for Religious Art was in 2007 won by Shirley Purdie with Linda Syddick Napaltjarri a finalist on three separate occasions, while the Clemenger Contemporary Art Award was won by John Mawurndjul in 2003 and Judy Watson in 2006. There is a national art prize for Indigenous artists, the National Aboriginal & Torres Strait Islander Art Award, which in 2013 was won by Jenni Kemarre Martiniello from Canberra.

Indigenous artists, including Rover Thomas, have represented Australia at the Venice Biennale in 1990 and 1997. In 2007, a painting by Emily Kngwarreye, Earth's Creation, was the first Indigenous Australian art work to sell for more than A$1 million. Leading Indigenous artists have had solo exhibitions at Australian and international galleries, while their work has been included in major collaborations such as the design of the Musée du quai Branly. Works by contemporary Indigenous artists are held by all of Australia's major public galleries, including the National Gallery of Australia, which in 2010 opened a new wing dedicated to its Indigenous collection.

The figurative "dot painting" produced by Western Desert artists is among the most well-known styles of contemporary Aboriginal art.

Aboriginal Australian art can claim to be "the world's longest continuing art tradition". Prior to European settlement of Australia, Indigenous people used many art forms, including sculpture, wood carving, rock carving, body painting, bark painting, and weaving. Many of these continue to be used both for traditional purposes and in the creation of art works for exhibition and sale. Some other techniques have declined or disappeared since European settlement, including body decoration by scarring and the making of possum-skin cloaks. However, Indigenous Australians also adopted and expanded the use of new techniques including painting on paper and canvas. Early examples include the late nineteenth century drawings by William Barak.

In the 1930s, artists Rex Battarbee and John Gardner introduced watercolour painting to Albert Namatjira, an Indigenous man at Hermannsberg Mission, south-west of Alice Springs. His landscape paintings, first created in 1936 and exhibited in Australian cities in 1938, were immediately successful, and he became the first Indigenous Australian watercolourist as well as the first to successfully exhibit and sell his works to the non-Indigenous community. Namatjira's style of work was adopted by other Indigenous artists in the region beginning with his close male relatives, and they became known as the Hermannsburg School or as the Arrernte Watercolourists.

Namatjira died in 1959, and by then a second initiative had also begun. At Ernabella, now Pukatja, South Australia, the use of bright acrylic paints to produce designs for posters and postcards was introduced. This led later to fabric design and batik work, which is still produced at Australia's oldest Indigenous art centre.

While the initiatives at Hermannsburg and Ernabella were important antecedents, most sources trace the origins of contemporary Indigenous art, particularly acrylic painting, to Papunya, Northern Territory, in 1971. An Australian school teacher, Geoffrey Bardon arrived at Papunya and started an art program with children at the school and then with the men of the community. The men began with painting a mural on the school walls, and moved on to painting on boards and canvas. At the same time, Kaapa Tjampitjinpa, a member of the community who worked with Bardon, won a regional art award at Alice Springs with his painting Gulgardi. Soon over 20 men at Papunya were painting, and they established their own company, Papunya Tula Artists Limited, to support the creation and marketing of works. Although painting took hold quickly at Papunya, it remained a "small-scale regional phenomenon" throughout the 1970s, and for a decade none of the state galleries or the national gallery collected the works, with the notable exception of the Museum and Art Gallery of the Northern Territory, that acquired 220 of the early Papunya boards.^{[citation needed]}