Brighton released him last season, and the 35-year-old was offered the opportunity to join Australian A-League side Melbourne City.
Hughes said: "I got a call a few weeks ago to say there was an opportunity for me to go to Australia if I was interested and I said 'definitely, 100%'. For me it is a great opportunity to experience something new having played in England all my career.
"It was an easy decision in the end to come here and bring my family as well. It is a fresh start and something I want to throw everything into and hopefully contribute to a successful season.
"I played for a few years with Damien Duff and he spoke highly of not just the club but the whole area and the people.
"He said the experience was fantastic. When the opportunity came up for me I dropped him a text and he pretty much said if I didn't go for it he would never speak to me again so that tells you all you need to know about what Duffer thinks of the place.
"From what I hear the team is well supported and the fans are really passionate and excited about what's happening here."