Of Melanesian, Polynesian and African-American heritage, Henry Gibson Dan was popularly known as Seaman Dan.
His youngest daughter confirmed the death of her father at the age of 91, writing on Facebook that she is "very saddened by this news".
"My father will always be my hero, for he turned a bad situation into good."
The musician released his first album at the age of 70 after decades of performing live gigs.
Seaman Dan's daughter says she will always remember her father's positive outlook on life. Source: Facebook
His music combined the genres of blues, hula and jazz with the traditional music of Torres Strait Islander culture.
He collected awards right into his eighties, winning two ARIA Awards for best world music album and a Red Ochre Award for his contribution to Indigenous music.
Fans also posted their tributes on social media.
"A wonderful man, wonderful musician and singer and a great advocate for the TSI communities and people. So sad Uncle Seaman," wrote Lyn Michel.
As a music teacher, Jane Nicholas says the impact of his music on her was profound.
"Such sad news. He is one of my musical heroes. It was such a treat as a music teacher to teach my students at my primary school about him and his music as part of my blues topic for year 5 and 6. Much condolences to you and your family."
"A legend through and through. So sorry for your family and a national treasure to be missed," wrote Vanessa Schultz.
Trevor Crawford said he will treasure memories of his first meeting with Seaman Dan.
"I first met Dan when he was singing pearly shells at the federal hotel TI in 1980. He always had that wonderful smile and made many people happy with his music. He will be sadly missed. Rest in peace my friend."
