The night was full of impressive performances, but the singer who ultimately claimed the title of Australia's Next Top Eurovision Hope was 37-year-old Kate Miller-Heidke.
Electric Fields took out second place with their song 2000 and Whatever on 114 points, while Sheppard came in third with On My Way on 87 points.
Miller-Heidke won the nationally televised competition to represent Australia at this year's Eurovision Song Contest, which will be held in May in Tel Aviv.
Australia has chosen - our Eurovision 2019 representative is...
"Kate's performance tonight was quite simply breathtaking and the response from the Australian public has been overwhelming", he said.
The creative director of Eurovision - Australia Decides, Paul Clarke, said it is clear to see why Miller-Heidke won over the jury and the public.
Despite the singer putting on a stellar performance and giving it her all at the song contest final in Portugal, she came in at number 20, right behind the Netherlands and Serbia.
"It's a win for out of the box brilliance, which Eurovision devours", he said.
Rice, who was voted into the finals of You Decide by judges Rylan Clark-Neal, Mollie King and Martin Humes, will automatically be put through to the finals of Eurovision as the United Kingdom are part of the big five - meaning that they are one of few countries that don't have to compete in the semi-finals.
Australia is a relatively recent entrant to the Eurovision Song Contest.
Last year's United Kingdom entrant SuRie finished 24th out of 26 in the Eurovision song contest after a stage invader interrupted her performance by grabbing the mic and shouting slogans about the media.
Australia competing in Eurovision started with Guy Sebastian in 2015, followed by Dami Im, Isaiah and Jess Mauboy.
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