The foursome of Thomas Fraser-Holmes, Nick Ffrost, Ryan Napoleon and Kenrick Monk also emulated the Australia women by setting a new Games record of 7:10.29, about a second quicker than the previous best from Manchester in 2002.
Scotland won the close battle for silver, while South Africa got bronze.
The race had been expected to be a straight fight between Australia and England but the Aussies were in no mood for a repeat of the final in Melbourne four years ago, which saw them pushed into third place.
The favourites went out in front from the off and stayed there until Kenrick Monk stretched away for victory on the final leg.
Behind them, Scotland put themselves in contention with a strong swim from men's 400m freestyle bronze medallist Dave Carry in a three-way fight with South Africa, Canada and England.
Jak Scott kept with the pace before handing over to 200m freestyle gold medallist Robbie Renwick.
Renwick held off South Africa's Chad Le Clos, the 200m butterfly champion.
Canada just missed out on the medals, while England trailed in fifth.