Creative Australia will take the place of the 48-year-old Australia Council, as part of a $286 million national cultural policy announced in January.
Ahead of the official launch on Thursday, the government has named a 14-member board, including artists Lindy Lee and Kitty Taylor, performer Caroline Bowditch, playwright and director Wesley Enoch and Woodford Folk Festival director Amanda Jackes.
"These appointees reflect the richness, diversity and strength of the arts in Australia," Arts Minister Tony Burk said.
Lee is completing a record-breaking $14 million sculpture commission for the National Gallery of Australia to celebrate the institution's 40th anniversary.
A $69 million body tasked with revitalising the country's music industry, Music Australia, will also be launched Thursday, as well as Creative Workplaces, an organisation aimed at improving arts workplaces, to be chaired by former Sex Discrimination Commissioner Kate Jenkins.
All arts organisations seeking federal government funding will be expected to adhere to minimum workplace safety and employment standards.