World’s No 1 came through 7-6 (7-5) 6-7 (4-7) 6-3 6-0 in three hours and 39 minutes.
It was a third win over British number one Andy Murray in a Melbourne final and brought him an eighth Grand Slam title.
Andy Murray, 27, has now won two of the eight Grand Slam finals he has played in, having lost all four in Australia.
“I would like to congratulate Novak – it is a fantastic record and thoroughly deserved,” said Andy Murray.
“It is probably my most consistent Grand Slam throughout my career but I just haven’t been able to win.”
Andy Murray, who underwent back surgery towards the end of 2013 and was playing in his first Grand Slam final since winning Wimbledon earlier that year, added: “I’m closer than I was a few months ago.
“I’ll try to come back next year and have a slightly different outcome in the final.”
Andy Murray, who will return to fourth in the world rankings on February 2, had chances in each of the first three sets of the final but ultimately lost his way and his temper as Novak Djokovic won 12 of the last 13 games.
Novak Djokovic, a week younger than his opponent, did look vulnerable at times, hurting his hand in a fall and appearing to struggle with an ankle problem early in the second set.
The Serb saw off one final moment of danger at break point in game seven, gesturing to coach Boris Becker to become more animated, but he required no assistance.
Andy Murray was a rapidly fading force, double faulting to drop serve at 5-3, and winning just 11 points in a fourth set that disappeared in under half an hour.
Novak Djokovic celebrated by throwing his racquet into the crowd, while a furious Andy Murray smashed his in despair.
“I’m honored to be standing here as a champion for a fifth time,” said Novak Djokovic after collecting the trophy from Australia’s Roy Emerson, the only man to win six titles.
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