A record crowd of 93,000 turned up for the second tournament running that the co-host nations had met in the final.
New Zealand won the toss and went in search of their first World Cup win with the bat, Mitchell Starc wasted no time making Brendon McCullum think twice about that choice as he was dismissed in the very first over.
One big threat was gone, and when Michael Clarke changed the bowling after restricting New Zealand to just 31 runs off the opening ten overs Glenn Maxwell's spin had an immediate impact, Martin Guptill joining his captain and fellow opener in the dressing room.
When Mitchell Johnson had Kane Williamson caught and bowled for 12, New Zealand was in disarray at 3 for 39, but Grant Elliot showed some fight, joining Ross Taylor in a partnership worth 111.
James Faulkner came back on to get rid of Taylor after a review on a caught behind by Brad Haddin was upheld.
Then, two balls later, new Batsman Corey Anderson was on his way.
Elliot stood defiant, gliding and stroking the ball around until he'd made 83 with Faulkner's slower ball doing the trick once again.
The Black Caps falling for just 183 all out in the 45th over.
The expectant home crowd was looking forward to an easy victory, but New Zealand wasn't quite done with yet.
In the second over Trent Boult got the better of Aaron Finch.
Dave Warner was next to go, but that brought Michael Clarke to the crease and the retiring captain was on a mission to push his side to the victory target.
Clarke wanted to go out in style and Southee's 7th over was a mini-master class: four fours in a row, all vintage shots as he raced towards the finish line.
He was out next over for 74 but even that was meant to be as he was able to receive a standing ovation in his last ever one day match.
Almost all of the 93,000 people at the ground rose to their feet, Michael Clarke becoming emotional as it came to an end.
There was time for Clarke's likely replacement as captain, Steve Smith, to pass his half century and then smash the winning runs, and despite all the emotion of the seven-wicket win Clarke had thoughts for his fallen teammate Phillip Hughes.
"For everybody in Australian cricket, it's been a really tough few months," he said.
"I'm sure I don't speak just for myself, I'm sure everybody standing on this stage tonight will say that we played this world cup with 16 players and tonight's certainly dedicated to our little brother and our teammate Phillip Hughes."
Disappointment for New Zealand but it wasn't all doom and gloom for Black Caps captain Brendan McCullum.
"As I say, it's something I'm immensely proud of all the guys within the team, all the management group and all those that have been part of the team over the past few years and helped build us into what we are."
"There's still a lot of work to do, but we can be immensely proud of what we've achieved this tournament."
Mitchell Starc was named man of the tournament after his two wickets took him level with Trent Boult on 22 wickets, and James Faulkener was named man of the match after his match turning figures of three for 36.
For Australia, it was just time to start celebrating the first World Cup win to have come on home soil, and Australia can truly be said to be World Champions -- having now won the title in all five continents in the world.
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