It would be almost exactly 20 years since Crowded House's farewell show at the Sydney Opera House, which took place on November 24, 1996.
Their original drummer Paul Hester, who passed away in 2005, will also be posthumously inducted into the ARIA Hall of Fame.
Crowded House's self-titled album, which contained the international hits Don't Dream It's Over and Mean to Me, was released in June 1986.
"Since our formation in Melbourne and our first album release in 1986 we have enjoyed a special relationship with Australia, one that has strengthened and endured over the years," Crowded House's Neil Finn and Nick Seymour said in a statement.
"We feel truly blessed that our songs have become a valued part of peoples' lives across generations. As a result, our affinity with fans and the music community here is unique and one we hold very close. We are delighted and honoured to accept the invitation to be inducted into the ARIA Hall Of Fame."
Neil Finn formed the band in Melbourne in 1985, after the demise of Split Enz.
Their original name was The Mullanes and featured Hester and Seymour, with Tim Finn joining for the Woodface album.
Other members include Americans Mark Hart (guitar) and Matt Sherrod (drums) and the late Peter Jones who played with the band from 1994 to 1996.
Crowded House enjoyed a string of global hits including Four Seasons in One Day, Fall At Your Feet, Weather With You, Better Be Home Soon, World Where You Live, Distant Sun, Something So Strong, Chocolate Cake, It's Only Natural, Locked Out, Private Universal, Not The Girl You Think You Are, Now We're Getting Somewhere, When You Come and Into Temptation.
Audience estimates for their Sydney Opera House farewell show were around 100,000 - recorded for the Farewell to the World album and film.
Crowded House reformed in 2007 for a new album, Time on Earth, followed by 2009's Intriguer, both records followed by global touring.
The band have been on hiatus but fans have expected some kind of reformation to mark the 30th anniversary of their first album.
Neil Finn's last release was his 2014 solo album Dizzy Heights.
Crowded House have sold more than two million albums including five No. 1s in Australia alone.
Their compilation Recurring Dream has gone platinum 13 times in Australia.
They have won 13 Aria Awards from 36 nominations.
Industry voting for the 2016 Aria Awards starts this week.
Sources say Crowded House is the first of many major coups organisers have lined-up for the anniversary event.
Channel 10 will air this year's awards, with performers and hosts due to be announced in the coming weeks.