The music star, who joined brothers Barry, Robin and Maurice Gibb in the 1960s and played on hit tracks including I Started A Joke, To Love Somebody and I Just Gotta Get A Message To You, died on Monday.
He contributed to four Bee Gees albums, including several songs on 1970's Cucumber Castle album, before leaving the group.
Before his music career, Petersen was a child actor, starring in the title role of 1956 Australian film Smiley - a character which earned him his nickname.
Over the last five years, Petersen has played with the Best Of The Bee Gees tribute show, his publicist Sue Camilleri confirmed.
"I've known Colin for 34 years and was thrilled when he agreed to bring his career full circle by joining the Best Of The Bee Gees," his manager Greg Shaw said in a statement given to the PA news agency.
"His endearing nature and unabashed storytelling added unique perspectives to the shows and he was loved on and off stage.
"It was an honour to have called him my friend."
Friend and colleague Evan Webster said in a statement given to PA: "Our lives were enriched the moment Colin joined our troupe.
"We shared years of laughs and music travelling around the country.
"He was such a fine gentleman and lived among us with grace and honour. He will be remembered forever."
Bee Gees star Maurice died unexpectedly in 2003 at the age of 53 due to complications from a twisted intestine while his twin Robin died in 2012, aged 62, from liver and kidney failure after battling colorectal cancer.
Petersen is survived by his two sons Jaime and Ben.
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