Having already broken the Commonwealth Games record in the heats, the addition of 100m freestyle world champion Cate Campbell to the final team proved the difference as they shaved more than seven tenths of a second off the previous record held by the Netherlands.
England took the silver medal with Canada coming third for bronze.
"It wasn't even a topic that we had discussed, but I think we all had an inkling in the back of our heads that it was possible," said the elder stateswoman of the team, Melanie Schlanger.
"It is pretty cool. I am 27 now and coming towards the end of my career so I never thought I would break another world record.
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"Australia used to break them all the time and I am sure we will see more in the next couple of years as we get closer to the super suit times.
"The suits put those targets a little bit away from everyone, but to have an Aussie record now is pretty exciting.
It was a particularly special evening for another of the team Emma McKeon as she also claimed gold in the 200m freestyle and qualified for the 100m butterfly final.
"It has been overwhelming. I wasn't expecting all of this tonight.
"I definitely enjoyed it all, but after my first medal I had to refocus for my next race and then for the relay.
Indeed the McKeon family had three medals to celebrate on the evening as her brother David also took silver in the men's 400m freestyle.