Born in Perth, Anne Levy moved to Adelaide at the age of six and has since resided there. She was awarded her Bachelor of Science with Honours in 1957 and her Master of Science in 1963, both from the University of Adelaide. There she worked as a Tutor and Senior Tutor in Genetics from 1960-1975.

Levy was elected Member of the Legislative Council of the Parliament of South Australia in 1975. She was re-elected in 1982 and 1989. She served on many Parliamentary Committees, including the Industries Development Committee (of which she was Chair) 1983-85, and the Statutory Authorities Committee, 1994-97. She was elected President of the Legislative Council, 1986-88. From 1989-1993 she served with the Bannon and later Arnold Governments as Minister for the Arts, Minister of Local Government, Minister of State Supply, Minister of Consumer Affairs, and Minister for the Status of Women. She retired in 1997.

Levy was also a Member of the Council of the University of Adelaide, 1975-96; Patron of the Humanist Society, and 1986 Australian Humanist of the Year; Member of the Abortion Law Repeal Association, 1969 onwards; Founding member of the Family Planning Association, 1972-84; Patron of Supporting Mothers Association (SA); Founding and life member of the National Foundation of Australian Women (Board member 1993-95 and President 1996-99); Honorary Life Member of the Women's Electoral Lobby; Elected member of the Management Committee of the Women's Legal Service (SA); and Founding member of Emily's List (Australia).

Levy worked primarily in areas of homosexual law reform, abortion law reform, euthnasia, rape law reform, childcare, maternity leave, equality in education for girls, equal pay and affirmative action. She married Keith Barley in 1956 and the pair had two children, Mathew (born 1959) and Rachel (born 1962).