Ledger's relationship with the press in Australia was sometimes turbulent, and it led to his abandonment of plans for his family to reside part-time in Sydney. In 2004, he strongly denied press reports alleging that "he spat at journalists on the Sydney set of the film Candy", or that one of his relatives had done so later, outside Ledger's Sydney home. On 13 January 2006, "Several members of the paparazzi retaliated ... squirting Ledger and Williams with water pistols on the red carpet at the Sydney premiere of Brokeback Mountain".
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Ledger was born in Perth, Western Australia, the son of Sally Ledger (née Ramshaw), a French teacher, and Kim Ledger, a racing car driver and mining engineer whose family established and owned the Ledger Engineering Foundry. The Sir Frank Ledger Charitable Trust is named after his great-grandfather. He had English, Irish, and Scottish ancestry. Ledger attended Mary's Mount Primary School in Gooseberry Hill, and later Guildford Grammar School, where he had his first acting experiences, starring in a school production as Peter Pan at the age of 13. His parents separated when he was 10 and divorced when he was 11. Ledger's older sister Kate, an actress and later a publicist, to whom he was very close, inspired his acting on stage, and his love of Gene Kelly inspired his successful choreography, leading to Guildford Grammar's 60-member team's "first all-boy victory" at the Rock Eisteddfod Challenge. Ledger's two half-sisters are Ashleigh Bell (b. 1990), his mother's daughter with her second husband and his stepfather Roger Bell, and Olivia Ledger (b. 1996), his father's daughter with second wife and his stepmother Emma Brown.
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"You know when you see the preachers down South? And they grab a believer and they go, 'Bwoom! I touch you with the hand of God!' And they believe so strongly, they're on the ground shaking and spitting. And fuck's sake, that's the power of belief... Now, I don't believe in Jesus, but I believe in my performance. And if you can understand that the power of belief is one of the great tools of our time and that a lot of acting comes from it, you can do anything."
He had a thick ledger lying open before him, and with the fingers of his right hand inserted between the leaves, and his eyes fixed on a very fat old lady in a mob-cap--evidently the proprietress of the establishment--who was airing herself at the fire, seemed to be only waiting her directions to refer to some entries contained within its rusty clasps.