The long-time 3AW talkback radio host died at home aged 82, executive assistant Annette Philpott confirmed.
"It is with great sadness that I let you know our dearest Derryn passed away in his sleep this morning," Ms Philpott said in a social media post on Friday.
"He got his wish and passed away in his own bed."
"As he would say, 'That's Life'."
Hinch became known as the "human headline" - a moniker he enthusiastically adopted - for his outspoken opinions that frequently landed him in hot water.
Hinch lived a life rich in colour and free from fear, Prime Minister Anthony Albanese said in a social media tribute.Â
"As an interviewer, investigator and presenter he was much more than 'the Human Headline' - he had a sense of the deeper story and the courage to cover it, come what may," Mr Albanese said.
"He held to those same instincts as a senator and he fought illness with that same bravery."
Hinch documented much of his later years and health struggles on social media, with his final post - a picture of his brother Des - appearing hours before his death.
As well as documenting his diet and viewings of Deal or No Deal, Hinch alerted followers to having had several falls and frequent hospital visits.
The New Zealand-born, larger-than-life personality was remembered by listeners and 3AW colleagues for never shying away from speaking publicly about the issues he saw as important.
Former colleague and 3AW newsreader Denis O'Kane remembered Hinch as a renegade and a lot fun.
"Serious guy to a lot of people, but also when you're out with him a lot fun," O'Kane said.
"He was a newsman - the best newsman you'd ever meet."
Hinch took his battle to hold those in power accountable to the political arena in 2016, forming Derryn Hinch's Justice Party and being elected to the Senate at age 72.
Federal Opposition Leader Angus Taylor described Hinch as "a man who stood by his opinions with conviction and was never afraid to court controversy".
"In politics, he will be particularly remembered for his fight to improve the criminal justice system, including harsher penalties for those guilty of violent and sexual crimes, and better support for victims."
Former federal Labor MP Emma Husar remembered Hinch in a social media post as "a very good friend, support and mentor".
The pair were forced to reject media claims of an inappropriate sexual advance by Hinch directed at Ms Husar, which both said never occurred.
"The teller of a great story, a crusader for justice and things which were never spoken about but needed to be," Ms Husar wrote.
"He was ahead of the #MeToo movement and the royal commission into institutional abuse.
"Today I am sad although I know he would want me to only remember the remarkable life he always said he was lucky to have."
Hinch had his fair share of off-air troubles, publicly discussing his battle with alcoholism that would come at great cost to his health.
He was diagnosed with liver cancer in 2007 and underwent an organ transplant in 2011.
In 2008, he served five months in home detention for naming two convicted child sex offenders.
He was also jailed for 50 days for refusing to pay a $100,000 fine for revealing the criminal past of Jill Meagher's killer Adrian Ernest Bayley in 2013.
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