He grew up in nearby Armidale NSW, where he lived from about 6 weeks of age until the age of 15. This is also where he first learned piano and dance. His father Dick became a violent alcoholic after returning from World War II. He shot and killed himself when Peter was still young. George never understood, nor got over this devastating event. Soon after this the family moved to Lismore to live. This tale is told in the song "Tenterfield Saddler". On 26 November 2005 an extension of the Tenterfield library was opened and named the "George Woolnough Wing". Allen married Liza Minnelli in 1967. His marriage to Liza Minnelli ended in divorce in 1974, and culminated his heterosexual guise. He subsequently proclaimed his homosexuality and publicly entered a relationship with Gregory Connell that lasted until Connell's death, 15 years later.
Becoming more comfortable with his homosexuality from the 1970s to 1984, Allen had a long-time partner, Gregory Connell. Connell was a fashion model from Texas who designed the sound and lighting for Allen's shows and sang backup on his rendition of "I Go to Rio." Connell died from an AIDS-related illness in 1984 at their home in California.