The top seed raced to the first set before fighting back from 5-1 down in the second to triumph 6-3, 7-6 on Rod Laver Arena.

Barty's victory ended Australia's long wait for a singles champion at their home Grand Slam, with Chris O'Neil the last to achieve the feat when she lifted the women's title back in 1978.

The 25-year-old has now won three Grand Slam titles after her triumphs at the 2019 French Open and at Wimbledon last year.

But this is the one she has always craved, and she showed admirable composure under serious pressure to overcome the challenge posed by Collins, who was competing in her first Grand Slam final.

A comfortable success for Barty appeared to be on the cards when she raced to the opening set, but Collins, the 27th seed who took a break from the sport last year, produced a spirited comeback in the second.

Collins led 5-1 and looked set to take the final to a decider before Barty won five consecutive games to force a tie-break.

Barty dominated the breaker and sealed victory with a superb forehand pass, sparking jubilant celebrations from the partisan 12,000-strong crowd.

"As an Aussie the most important part of this is being able to share it and you guys have been nothing short of exceptional," Barty said.

"This crowd is one of the most fun I have ever played in front of - you relaxed me and forced me to play my best tennis.

"Against a champion like Danielle I had to bring that today.

"This is a dream come true to me and I am so proud to be an Aussie."

Wildcard entries Nick Kyrgios and Thanasi Kokkinakis clinched the men's doubles title after beating fellow Australians Matthew Ebden and Max Purcell 7-5, 6-4.

A spectator was ejected from the match for persistently calling out as Ebden and Purcell were serving to stay in the match at 5-3 down in the second set.