Coach Allan Bunting said it was sweet to get a victory over their Australia rivals.
Team captain Sarah Goss said ""I'm so happy right now".
"We've got a new team, new management and to beat Australia is great. To come back after the Olympics, it was tough, but to beat Australia in probably my favourite tournament, is so exhilirating for me."
The team breezed through the tournament playoffs, beating Russia 24-5 in the semifinal and South Africa 39-nil in the quarterfinal.
Michaela Blyde was a standout, scoring five tries in pool play and then a further five across the semifinal and quarterfinal to tally 10 for the tournament.
The next women's sevens tournament is in Sydney in February.
The New Zealand men's sevens side has crashed to a 26-12 loss to England to round out group play in Dubai.
Earlier, they beat Russia 26-5 and Samoa 26-21.They'll meet South Africa in the quarter-finals tomorrow.
Meanwhile, Fiji resumed normal service in sevens rugby and won all three of its pool games on the first day of the world series.
But it was a struggle for the world series and Olympic champion.
Fiji blew a 19-0 lead against Canada, and needed a last-minute try from Waisea Nacuqu to win 26-19. Then they rallied from 12-7 down to beat Wales 24-12, and trailed 12-0 and 19-17 before beating Argentina 22-19 on another late try, by Joeli Lutumailagi.
Fiji will play France in the quarterfinals on Saturday. The others are: England vs. Scotland, Australia vs. Wales, South Africa vs. New Zealand.
South Africa eased through its pool against the United States, Scotland, and Uganda, while Australia needed a last-minute try from Charlie Taylor to beat Kenya 17-12 and top Pool D.
England handled Samoa and Russia, and five-time Dubai champion New Zealand 26-12. Tom Mitchell opened and finished with tries against the Kiwis, the second by racing through to his own kick in goal.
New Zealand's DJ Forbes set an appearance record in his 80th tournament, one more than Samoa's Uale Mai.
"It's pretty special," Forbes said. "It's a cliche, but it's a massive sacrifice by my family and friends for 11 years."