The number of people involved in the visual arts has almost doubled since 2004, according to the Australian Bureau of Statistics.
In 2007, around 1.4 million people participated in some from of visual arts both at professional and non-professional levels, compared with 800,000 in 2004.
The most popular art forms included photography, painting and drawing.
Visual arts on the computer increased by almost 50 per cent.
Executive Director National Association for the Visual Arts (NAVA) Tamara Winikoff said using digital cameras, mobile phones and computers to make art had become increasingly popular among young people.
"The use of visual tools in communications has increased exponentially in the past few years with the changes in technology.
"A very large proportion of the younger generation use these tools as a matter of course."
She said another reason could be the increase in the cost of artworks.
"The sales and prices that visual arts are commanding through sale and resale are now so high that it's getting quite a lot of media attention."
"And younger people are not just learning about art history they now want to include the experience of living with and viewing contemporary art as part of everyday life."
The federal government is currently reviewing the teaching levels of visual arts and literacy in schools.
Ms Winikoff said currently, based on anecdotal evidence, the levels were not adequate.
"The amount of visual training in school is lamentable and also the preparation of teachers to teach in the contemporary world is just so nineteenth century," she said.
"It needs to be revised so teachers are adequately equipped to teach 21st century children what is an equally fundamental skill to text literacy and numeracy."
The ABS survey also looked at people's participation in other cultural and leisure activities including crafts, jewellery making and textiles.
The survey found that the number of people aged 15 and over involved in these activities had risen 17 per cent since 2004.
The survey also showed that one third of the people involved visual arts, crafts and cultural activities received some form of payment.
And overall women were more likely to have taken part in these activities.