Sarah Coyte grabbed three for 16 in her four overs and Ellyse Perry and Rene Farrell claimed two wickets each to restrict England to a modest 105 for eight after Australia won the toss and elected to field.
Heather Knight's 29 off 24 balls and Sarah Taylor's 18 lifted England to 55 for one before seven wickets crashed for 46 runs against the steady Australian attack that was backed by smart fielding.
Australian captain Meg Lanning then smashed a 30-ball 44 studded with two sixes and four boundaries as the champions raced home with 29 deliveries to spare in a one-sided final.
Lanning said it was ‘almost the perfect match’ for her team.
"It's amazing to win this and great to be able to play so well," said Lanning. "It was almost the perfect match today [Sunday].
"The bowlers did it for us. We had our plans and executed them well. Even while chasing a small total we wanted to be positive.
"I'm really happy right now. We have a lot of experience even though we are young and we can build something really big. We have a great core of players."
We were just not good enough: Edwards
England captain Charlotte Edwards admitted her team was outplayed by Australia.
"They bowled very well and they came out and batted well," said Edwards. "We were just not good enough today [Sunday].
"We never got going and kept losing wickets at key stages. The total of 105 was never going to be enough in a World Cup final. I am just bitterly disappointed we could not get over the line."
England had won the inaugural women's World Twenty20 competition at home in 2009 before Australia took the next two in the Caribbean in 2010 and Sri Lanka in 2012.
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