In 1992, James was made a Member of the Order of Australia (AM). This was enhanced to Officer level (AO) in the 2013 Australia Day Honours. James was appointed Commander of the Order of the British Empire (CBE) in the 2012 New Year Honours for services to literature and the media. In 2003 he was awarded the Philip Hodgins Memorial Medal for Literature. He received honorary doctorates from the Universities of Sydney and East Anglia. In April 2008, James was awarded a Special Award for Writing and Broadcasting by the judges of the Orwell Prize.