Rolf Harris, one of Australia's most famous exports, returned home to be inducted into the ARIA Hall of Fame.

The 78-year-old entertainer and long-time British resident joined dozens of stars and celebrities young and old from the world of music at Melbourne Town Hall for the recording industry's annual showpiece event.

Fellow entertainers Max Merritt, Real Thing creator Russell Morris and The Triffids were also Hall Of Fame inductees alongside Harris, joining past luminaries including Dame Joan Sutherland, Slim Dusty and INXS.

Harris, who headed to London in the 1950s to seek his fame and fortune, hit the big time with his Aussie classic Tie Me Kangaroo Down Sport, which topped the charts in Australia and was a top 10 hit in the UK in 1960.

"It is thrilling to be honoured by the recording industry people, it's amazing, it's something I never dreamed would happen," he said, after arriving for tonight's glittering event.

Harris said after years of trying to make it as an entertainer in England and trying to fit in with a dodgy British accent, it was rewarding to be acknowledged in his home country, especially for a song that was uniquely Australian in its accent and content.

"... it made me realise you could be yourself, be unashamedly Australian and be successful. It was like a revelation, as I'd been trying to be British for seven years," he joked.

"I'm just so thrilled that this ARIA award tonight is sort of a vindication of that, in a way."

Earlier, country singer Kasey Chambers led a veritable encyclopedia of stars and celebrities spanning half a century, for the red carpet arrivals that included The Living End, Cold Chisel's Ian Moss and The Seekers.

Chambers later joined 67-year-old Merritt on stage to perform an acoustic version of Merritt's classic, Slippin' Away, in front of an audience that also included Molly Meldrum, rock historian Glenn A Baker and former federal Labor leader Kim Beazley.

Baker said New Zealand-born Merritt had been a huge, influential performer for many bands that followed.

"He arrived over from New Zealand full of soul and grit and passion and I don't think we in Australia really had seen anybody quite like that, somebody who was so real, so raw and so intense," Baker said.

"Max always had an audience and the audience was devoted to him."

Merritt, who has recently battled ill-health, said it was humbling and very exciting to be honoured by the Australian recording industry.

"It's fabulous, we don't set out to aim to do this, we just hope that it happens some day and we're a little part of Australian history," Merritt told AAP.

As well as the Hall of Fame inductees, veteran Sydney broadcaster John Laws was honoured with an ARIA Lifetime Achievement Award.

AAP