Paul Kelly at the Mod Club

Life is fine for Paul Kelly.

The legendary Australian singer-songwriter returned to Toronto on Tuesday with a full band made up of some of his longtime musical friends, comprised of a tight four-piece band featuring Ashley Naylor on guitar, Bill McDonald on bass, Cameron Bruce on keys and Peter Luscombe on drums, with Vicka and Linda Bull on backing vocals.

Paul Kelly played The Drake Underground just last May when he toured with guitarist Charlie Owen in an intimate gig with his daughters singing backing vocals. This show was much more rock ’n’ roll. The set began in an unusual way with the entire new album (Life Is Fine) played in full front-to-back. It worked.

Firewood and Candles got the sold-out crowd moving early on. Vika Bull almost stole the show taking over lead vocals for the bluesy and fun “My Man’s Got a Cold.” A few songs later it was a neat twist to hear “Don’t Explain” sung by her sister Linda.

It’s always a treat seeing a Paul Kelly performance. His between-song banter is light and humorous and he often gives insight into his songs. “Leah: The Sequel,” Kelly explained, is actually a posthumous collaboration with Roy Orbison. Orbison’s song Leah was reimagined with the lead character not drowning but getting saved. “I had to contact Roy Orbison’s estate to get permission.”

After all 12 songs of the album were performed in succession, the almost 2-hour set continued with at least another dozen songs, including some of Paul Kelly’s more upbeat classics: “Before Too Long,” “Careless,” “Dumb Things” and “Sweet Guy.”

Opening the show was New Zealand born singer Jess Cornelius, who is joining Paul Kelly for this 24-date North American tour. She warmed up the crowd with some cheeky, personal and often self-deprecating songs.