The winners of the men's and women's singles at the first Grand Slam of the year will each take home AU$4.15 million (US$2.79 million), up 19 percent from last year's AU$3.5 million.
Players beaten in the opening round will get AU$150,000 (US$100,750), while even those knocked out in the first round of qualifying receive AU$40,500 (US$27,200).
Tournament director Craig Tiley said it reflected Tennis Australia's commitment to supporting tennis careers at every level, from rising stars to Grand Slam champions.
"From boosting qualifying prize money by 55 percent since 2023 to enhancing player benefits, we're ensuring professional tennis is sustainable for all competitors," he said.
"By supporting players at all levels, we're building deeper talent pools and more compelling storylines for fans."
The tournament gets under way at Melbourne Park on January 18, with Jannik Sinner and Madison Keys defending their titles.