Baz Luhrmann was raised in Herons Creek, a tiny rural settlement in northern New South Wales, where his father ran a petrol station and a movie theatre, both of which would influence his son's filmmaking career. He attended Sydney Grammar School.

Luhrmann married Catherine Martin, the production designer on all of his films, on January 26, 1997. They have two children, Lillian Amanda Luhrmann and William Alexander Luhrmann.

After theatrical successes, including the original stage version of "Strictly Ballroom", Luhrmann moved into film, and has directed three so far:

Strictly Ballroom (1990), starring Paul Mercurio and Tara Morice
Romeo + Juliet (1996), starring Leonardo DiCaprio and Claire Danes
Moulin Rouge! (2001), starring Nicole Kidman and Ewan McGregor
These three films are now formally marketed as 'The Red Curtain Trilogy'.

Luhrmann was working on a biographical film about Alexander the Great, tentatively starring DiCaprio and Kidman, but the release (and subsequent box office failure) of Oliver Stone's film on the same subject in 2004 has cast doubt over whether the project will be completed.

Announced in November, 2005, Luhrmann will write (with Stuart Beattie) and direct a period piece film in outback Australia with Hugh Jackman and Nicole Kidman. The film has already been touted as an epic, likened to a Gone With The Wind.

He is rumored to be working on a cinema adaptation of his friend Nelline Zilberg's novel Magic Rackoon.

Luhrmann has stated Italian grand opera as a major influence on his work including the Moulin Rouge!. He has also listed other theatrical styles like Bollywood films as having had an influence on his work like Moulin Rouge!.

In 2003 Luhrmann brought his critically acclaimed production of Puccini's La Boheme to the Broadway theatre stages of New York City. Originally produced in Sydney in 1993, once in New York it eventually garnered 7 Tony Award Nominations, including Best Revival of a Musical, Best Direction (Luhrmann), Best Orchestrations (Nicholas Kitsopoulos), Best Costume Design (Catherine Martin) and won for Best Set Design (Catherine Martin), Best Lighting Design (Nigel Levings), and the special award for Excellence in Theater (Principal Ensemble Cast).
In 2004, Baz Luhrmann directed a lavish multi-million-dollar commercial for Chanel No. 5 titled N� 5 the Film, starring Nicole Kidman and Rodrigo Santoro.
Luhrmann is also credited with a 1999 UK number one single entitled Everybody's Free (To Wear Sunscreen).
He directed a video for John Paul Young's Love is in the Air which was re-released to coincide with the release of Strictly Ballroom (in which the song featured prominently).
He orchestrated the re-election campaign of former Australian Prime Minister Paul Keating.
Luhrmann was appointed an Ambassador for the Australian Theatre for Young People in 2005.