The long-running soap announced that Reg Watson had died aged 93, after the latest episode aired in Australia on Saturday.
Kylie, who shot to fame playing Charlene Ramsay in the Aussie soap in the late 80s, paid tribute on Twitter.
“What a legacy Reg Watson leaves,” she tweeted. “For me, and millions of others, Neighbours impacted our lives. My thoughts and best wishes to his family and friends.”
The soap is Australia’s longest-running drama and is due to celebrate its 35th year in 2020.
As well as Kylie, the show has launched the careers of Margot Robbie, Natalie Imbruglia, Holly Valance and Jason Donovan.
Jason, who played Scott Robinson in the soap drama, also paid tribute on Twitter: “Many Australian careers have a lot to thank for this man. A legend....Mr Reg Watson.”
Watson grew up in Queensland, working as a radio actor and later an announcer.
In 1955 he moved to Britain and became head of light entertainment at ATV.
The network called him a “television pioneer” and noted his work creating Midlands soap Crossroads and Prisoner.
Neighbours executive producer Jason Herbison also described Watson as a pioneer and said all at the show were saddened by his passing.
Herbison said: “He was a pioneer of drama, prolific in his output and by all accounts a lovely person to work with.
“His legacy lives on in Ramsay Street to this day.”