The "Fancy" star was recently rumoured to be in talks to join the judging panel on the hit reality show, following singer/TV personality Dannii Minogue's departure,.
The 26-year-old rapper, who hails from Sydney, has now admitted she was initially hesitant about taking the job, but the added benefit of being able to spend more time with her family while she works helped to sway her decision, reported Contactmusic.
"I really didn't picture myself being a judge on any kind of television show but I think that actually this could be a good fit for me, so I said yes," she told Sydney Confidential, revealing she is keen to help others from similar backgrounds break into the industry.
Dannii, sister of pop superstar Kylie Minogue, originally joined "The X Factor Australia" in 2013 and last year shared judging duties with British singer/songwriter James Blunt, Guy Sebastian, and Chris Isaak for the show's seventh season.
It is not yet known if Blunt, Sebastian and Isaak will return to sit alongside Azalea on the show's eighth run, which is due to begin filming later this year.
Previous "The X Factor Australia" judges have included Ronan Keating, Natalie Imbruglia, Melanie Brown, and LMFAO's Redfoo.