Palmer was born and raised in Adelaide, South Australia. She is the only child of Kevin Palmer, an investor, and Paula Sanders, a former nurse and missionary. Her parents divorced in 1989 when she was three. She has a stepmother, Kaaren Palmer, as well as two half-sisters and two stepbrothers, who lived with her father. Palmer stated to Interview that she "came from rather humble beginnings"; she lived in public housing with her mother, and grew up on her father's farm in the Adelaide Hills. Palmer was named after Mother Teresa by her mother, and has stated that she had a "tough upbringing" due to her mother's manic depression.
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