Arch-rival Maria Sharapova is again expected to be the American's main challenger, with injuries marring the preparation of other leading hopefuls including Simona Halep, Caroline Wozniacki and Victoria Azarenka.
Melbourne Park has been a happy hunting ground for Williams, who claimed five of her 18 career majors at the venue -- the first way back in 2003.
But the 33-year-old's most recent success Down Under was in 2010 and her erratic form in this month's Hopman Cup raised fears she faces a failure similar to last year, when she crashed out in the fourth round.
"I feel like I'm getting back into the groove... I'm getting there," she said.
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Williams held on to the top ranking for the entire 2014 season, ending the year with a flourish to take the US Open and the WTA Tour Championship.
Another Australian title would take her to clear second on the all-time Grand Slam winners list behind Steffi Graf's 22, having joined Chris Evert and Martina Navratilova on 18 with her win at Flushing Meadows.
World number two Sharapova scoffed at suggestions Williams was past her best.
"You can't say someone is on the edge of the cliff when they are number one in the world," the Russian said. "She still came through and finished the season strong.