The four-man team took victory in the final of the 4km event against
Britain in a time of 3 min 48.012 sec, more than a second inside their
own previous record set last year.
Sam Welsford, Kelland O'Brien, Alexander Porter and Leigh Howard claimed gold over their British rivals in the final.
It was a 13th world title in men's team pursuit for Australia.
For Britain's Ed Clancy, it meant a world silver medal to add to his three Olympic titles in the discipline.
Australia had set the previous world record of 3min 49.804sec on home ground at the Commonwealth Games in 2018.
Denmark claimed the bronze medal at the expense of Canada.