Peter Goldsworthy was born at Minlaton, South Australia. He grew up in various South Australian towns and in Darwin before studying medicine at the University of Adelaide. Goldsworthy graduated in 1974 and, while beginning his career in medicine, began to see his poems published in Westerly and several issues of the Friendly Street Poetry Reader. Goldsworthy's poetry and short fiction began to attract attention in the early 1980s and in 1982 he won the Commonwealth Poetry Prize for a first collection with Readings from Ecclesiastes. In 1989 he published his first novel, Maestro, and has since published five more novels, including a collaboration with Brian Matthews.
Goldsworthy's poetry and fiction often assess the triviality of contemporary life with acerbic wit and humour. His works frequently exhibit a compassion for the disadvantaged that is balanced by his critique of the apathy of those more fortunate.
His novels have been well received and Maestro is widely taught in high schools. His works have been translated into many languages. He has published essays in many periodicals and published a selection of these in Navel Gazing (1998).
Some of Goldsworthy's poems have been set to music by Australian composers such as Graeme Koehne, Richard Mills and Matthew Hindson, and he has written libretti for Richard Mills' operatic version of Ray Lawler's Summer of the Seventeenth Doll and the opera Batavia, also by Mills.
He was appointed Chair of the Australia Council's Literature Board in 2001 and has also chaired the Libraries Board of South Australia..