There is a billion-dollar economy in Australia that is both underrated and underpaid, according to a new study commissioned by the live music industry.

While most musicians keeping the beat alive on Australia's concert circuit earn roughly $12,000 in a good year, the industry itself generated a whopping $1.2 billion worth of ticket sales during the financial year 2009-2010, according to a report by Ernst & Young.

The report, commissioned by the Australian Council for the Arts and the Australasian Performing Right Association, showed that as many as 42 million concertgoers came to hear bands playing in Australia's music venues, which accounted for more than 300,000 performances in the period.

The gross figures during the same period, APRA director Paul Mason said, led to the full-time employment of close to 15,000 people in as many as 4,000 music venues across the country, making the industry a key but little acknowledged economic muscle for the country.

"This was an attempt to give ourselves a benchmark, an economic snapshot of activity," Mason told ABC in explaining the significance of the live music industry report.

His colleague, APRA corporate services chief Dean Ormston, added that the Ernst & Young study should give an idea to federal authorities on the viability and economic significance of the live music scene, which could become a major component of Australian tourism.

Or Australia could follow America's example of exporting the artistic works and performances of performers such as Lady Gaga, Katy Perry and Taylor Swift.

"Music in small venues is the grassroots of our live music export market, so if we're going to have export occurring for live artists then we need a really solid base in terms of our venue-based live music industry," Ormston told ABC.

Yet before such scenario could materialise, APRA officials said the government could extend some help in increasing the pay grades of many live musicians, with the report noting that normal costs for seeing an original live band perform was $10 while movie tickets are prices $18 and up.

Industry stakeholders hope the report will encourage the federal government to implement measurers that would further uplift an already vibrant industry come the national tax summit in October.