The victory moved Serena past Steffi Graf on the list of all-time slam winners and she now sits just one shy of Margaret Court's long-standing record of 24.
Serena Williams beat her sister Venus 6-4 6-4 in the Australian Open final on Saturday to win a record 23rd grand slam title in the professional era.
The victory is the seventh Melbourne Park crown win for the 35-year-old American player.
The win ensured Serena, who hit 10 aces and 27 winners, would regain the world number one ranking from Germany's Angelique Kerber on Monday.
Serena slumped to the ground, with hands in the air and eyes wide with joyous disbelief, before congratulating her sister for inspiring her run in Melbourne.
"She's an amazing person, there's no way I would be at 23 without her," the second seed Serena said, cradling the Daphne Akhurst Memorial Cup at the trophy ceremony.
"She's the only reason the Williams sisters exist, so thank you for inspiring me to be the best that I can be."
The win moved her past Steffi Graf on the list of all-time slam winners and she now sits just one shy of Margaret Court's long-standing record of 24.
The victory also wrested back the world number one ranking from Angelique Kerber who swiped it away during her winning run in the US Open championship.
Venus was the oldest finalist in Melbourne in the professional era and won huge admiration for her unlikely run to the final.
"Serena Williams, that's my little sister, guys," she said beaming.
"I'm enormously proud of you, you mean the world to me."