The quartet of Ariarne Titmus, Madison Wilson, Brianna Throssell and Emma McKeon smashed the previous time of 7:42.08 which was set by China a decade ago in the supersuit era.
Titmus, who swam the first leg of the relay, set a new Commonwealth record to give her teammates a lead.
It is Australia’s third gold in the relay events after taking home the women’s 4×100 freestyle relay and 4x100m mixed medley relay.
“As Emma was coming to the wall, I was just screaming with all my energy that I had left saying ‘come on, you can do it’ – nothing describes the moment when Em touched the wall,” Wilson said.
Meanwhile, teenager Kaylee McKeown placed equal fourth in a tight women’s 50m Backstroke final, clocking 27.65.
Friday night will see Cate Campbell and Emma McKeon in the Women’s 100m Freestyle final.
Campbell raced in her first semi-final of the World Championships and qualified second fastest in 52.71, while McKeon took out her semi in 52.77 to head in as the third fastest competitor.
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