Iggy Azalea was born Amethyst Amelia Kelly, in Sydney, Australia. Her family later relocated to Mullumbimby, New South Wales, when she was still an infant, into a house on 12 acres that her father built by hand from mud bricks. Her father was a painter and comics artist, while her mother cleaned holiday houses and hotels. Azalea says her father "made her look at [art] as a teenager", which has always influenced her life and work.
Azalea began rapping at age 14. Before embarking on a solo career, Azalea formed a group with two other girls from her neighborhood: "I was like, I could be the rapper. This could be like TLC. I'll be Left Eye." Azalea eventually decided to disband the group because the other girls weren't taking it seriously: "I take everything I do serious. I'm too competitive."
In pursuit of her desire of moving to America, Azalea dropped out of high school; instead choosing to work and save the money she earned by cleaning hotel rooms and holiday houses with her mother. She claims to have hated school, which, besides her art class, only made her miserable. She also said she had no friends and was teased for her homemade outfits.
Azalea traveled to the United States in 2006, right before she turned 16. She told her parents she was going "on a holiday" with a friend, but eventually decided to stay and shortly after told them she was not coming back home: "I was drawn to America because I felt like an outsider in my own country, I was in love with hip hop, and America is the birthplace of that, so I figured the closer I was to the music, the happier I'd be. I was right."
She recalled: "My mum was crying, saying, 'Just be safe.' I was thinking, 'I'm going by myself. I'm fucking crazy!" After her arrival in America, she resided in the U.S. on a visa waiver for six years, leaving the country every three months to renew it. She is currently in the country on a five-year O visa, having previously earned money illegally.