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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. The director had seen her head shot on the acting agency's website and wanted her to be in the movie.
Palmer signed on to do three movies, if the film became a franchise.
She appeared opposite Joel Edgerton in the independent Australian drama-thriller, Wish You Were Here, directed by Kieran Darcy-Smith.
In 2009, Palmer formed the film production company Avakea Productions, with Australian actresses Tahyna Tozzi and Nathalie Kelley.
In November 2007, Palmer was cast as the villain, Talia al Ghul, in the DC Comics superhero film, Justice League of America, alongside D. Cotrona, Adam Brody, Anton Yelchin, Common and Megan Gale.
George Miller was set to direct the film, but it was cancelled by Warner Bros.
She was a guest judge on MTV Australia, for the Sydney filmmaking talent contest, Optus one80project.
In 2011, Palmer starred in the sci-fi adventure film, I Am Number Four, alongside Alex Pettyfer and Dianna Agron.