Tara Morice was almost not cast as Fran, even though she played the character in the stage version, because the financial backers were reluctant to cast a non-dancer in the role. Pimples were painted onto her face for her early scenes.
Baz Luhrmann participated in the sorts of ballroom dancing competitions shown in the movie. Stricly Ballroom began life as an improvised play, featuring Luhrmann. The play was later performed at the Sydney Theatre Company.
Fran's house was a set built on to an existing railway station. In the most expensive shot in the entire film, a train was hired to pass by the house twice. Once, a real food inspector came onto the set and demanded paperwork because he thought it was a real shop.
Original co-producer Ted Albert died suddenly from a heart attack during the early stages of production. Despite this, and with the blessing of Albert's wife Popsy, Ted's family company Albert Productions (which also produced the soundtrack) decided to stick with the production and put up $1 million of the $3 million budget.