The 47-year-old Australian singer and 48-year-old actor, who co-starred on the soap opera Neighbours in the late 1980s, will appear in the new Stephan Elliott comedy.
Flammable Children takes place in "a sleepy beachside suburb" in Australia in 1975. The film follows "a crucial, comical and revelatory week" for a teenage boy and girl during the country's "sexual revolution" and "constitutional crisis."
Elliott, who is known for The Adventures of Priscilla and Queen of the Desert, is re-teaming with several Priscilla collaborators on the movie, including score composer Guy Gross, production designer Colin Gibson and producer Al Clark.
Minogue's casting comes amid word she will perform at Queen Elizabeth's 90th birthday celebration in May. English comedy duo Ant & Dec will host a four-night event with actors Damian Lewis, John Boyega and singer James Blunt in attendance.
"This spectacular evening will bring together some of the best-known names in the entertainment world," Ant & Dec said in a statement.
Minogue and Pearce played Charlene Robinson and Mike Young on Neighbours, which is in its 32nd season. The singer most recently appeared on the ABC series Galavant, while Pearce played the title character on Jack Irish.