The living legend's landmark triumph also matches American swimmer Michael Phelps' 23 Olympic gold medals and she was quick to praise Venus for her sister's part in her reaching the symbolic number.
"I would really like to take this moment to congratulate Venus. She is an amazing person," Serena said.
"There is no way I would be at 23 without her. There is no way I would be at one without her.
"She is my inspiration, she is the only reason I am standing here and the only reason that the Williams sisters exist.
"Thank you Venus for inspiring me to be the best player that I could be and inspiring me to work hard. Every time you won this week, I felt like I got a win, too.
"I definitely think she will be standing here next year. I don't like the word 'comeback'. She has never left. She is such a great champion."
Among countless other records, Williams - at 35 years and 125 days - also extended her own record as the oldest woman to win a major in the open era.
Margaret Court fittingly had the best seat in the house, front and centre in the President's Box at Rod Laver Arena, as Williams also drew within one slam of the legendary Australian's record 24 singles majors with a typically ruthless display.
The superstar siblings were clashing for the ninth time in a grand slam final - but the first since 2009 - and this was Serena's seventh success in the matches that mattered most.
With a 20-from-20 record in grand slam finals after taking the first set, Serena had no plans to let up and secured victory in 82 minutes to deny Venus, at 36, her own watershed win - and eighth career major.
After losing last year's final to Kerber, and then the French Open decider to Garbine Muguruza, Williams now holds two of the four grand slam trophies - Wimbledon and the Daphne Akhurst Memorial Cup for her emphatic victory on Saturday night.
Venus was as gracious in defeat as Serena was in victory.
"Serena Williams, that's my little sister, guys. Congratulations Serena on No23. I have been right there with you, some of them I lost right there against you," she said.
"Yes, that is weird but it is true. But it has been an awesome thing, your win has always been my win, I think that you know that.
"Those times that I couldn't be there, didn't get there, you were there.
"I am enormously proud of you. You mean the world to me."
- AAP