The 37-year-old singer-songwriter performed her songZero Gravity during the live TV final Eurovision - Australia Decides on the Gold Coast last night.
He will now go on to perform it at Eurovision in May, which takes place in Tel Aviv, Israel, following Netta's win previous year with her song, Toy.
She came out on top with a total of 135 points, 87 points from the public and 48 points from the jury of industry experts.
Despite the singer putting on a stellar performance and giving it her all at the song contest final in Portugal, she came in at number 20, right behind the Netherlands and Serbia.
Classically trained Kate Miller-Heidke is heading to Tel Aviv to represent Australia at this year's Eurovision after beating out 10 others for the honour.
Co-written with her husband Keir Nuttall, Kate Miller-Heidke's song Zero Gravity explores the singer's experience with post-natal depression, which she suffered after the birth of her son, Ernie, in 2016.
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Speaking on Saturday night, Miller-Heidke said she was "so grateful and thrilled" to represent Australia at Eurovision.
It will be the 64th edition of the Eurovision Song Contest.
"This could seriously be the year that Australia wins Eurovision!" said SBS Commissioning Editor Josh Martin.
"It's a win for out of the box brilliance, which Eurovision devours", he said.
Last year's United Kingdom entrant SuRie finished 24th out of 26 in the Eurovision song contest after a stage invader interrupted her performance by grabbing the mic and shouting slogans about the media. I want to thank all the artists who made the first ever selection show a spectacular success and all the fans who got behind them.
Jessica Mauboy performed at the event in 2014 as an interval act.
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