The awards show featured a message from Olivia's daughter Chloe Lattanzi earlier in the night before finishing with the musical tribute.
Natalie Imbruglia led the medley, which featured Key, Peking Duke and Tones & I, with the group performing 'Hopelessly Devoted to You', 'You're the One That I Want', and 'Xanadu'.
Olivia passed away in August at the age of 73, following a decades-long battle with breast cancer.
Fans labelled the tribute to the Aussie icon as "pathetic" and "weak", given her contribution to the music industry.
"Olivia Newton John deserved better than this," one fan wrote on Twitter.
— Doug Jamieson (@itsdougjam) November 24, 2022
That wasn’t a good tribute on Olivia Newton-John tonight, it should’ve been done with respect to an Australian icon #arias
— ⚫️⚪️ JAKE ⚫️⚪️ (@IncrediblyBozza) November 24, 2022
"That wasn’t a good tribute on Olivia Newton-John tonight, it should’ve been done with respect to an Australian icon," another added.
"To be honest...that Olivia Newton John tribute was pretty poor in comparison what @Pink did at the #AMAs," a third said. "Definitely a disappointing [ARIAs]."
"What did Olivia do to deserve THAT?" someone else added.
"It would have been so much better if they just played a video of Olivia singing hopelessly devoted or something. that was… interesting," another said.
However, some fans loved the tribute, with one user writing, "That was an amazing tribute to an Australian icon Olivia Newton-John."
"We’re all hopelessly devoted to you #olivianewtonjohn (and how good is Tones & I)," another said.
"Beautifully done. Pleased it was all about the joy," a third wrote.
Chloe Lattanzi's tribute to her mum Olivia Newton-John
— Channel9 (@Channel9) November 24, 2022
Chloe Lattanzi appeared via video, where she thanked the ARIAs for including a tribute for her mother.
"Thank you so much for doing this beautiful tribute to my mum. She was so grateful and so moved by all of the support that she received from Australia during her cancer battle," she said as she began tearing up.
"Excuse me. I just wanted to say thank you so much for remembering her so beautifully and I ask that you continue to remember my mum and honour her by supporting the Olivia Newton-John Cancer Wellness and Research Centre so that my mum's dream can come true. A world without cancer."
"Please enjoy the night, live it up, have fun, enjoy the tribute and enjoy life like my mum did. Thank you so much."
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