The Australians, who had won the first Olympic gold medal in Rio in 2016 and dominated this season's women's sevens series, had been heavy favourites heading into the final between the trans-Tasman rivals.
"But we have cultivated a lot of mental resilience this year so we decided we were going to park the semi-final defeat and enjoy the unbelievable experience".
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England suddenly found themselves one set away from defeat, but they recovered with an 11-6 victory in the fourth to set up a decider, which they went on to win 11-8 to clinch the gold medal.
"It always hurts and it will do for a while longer".
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Any hopes South Africa might have had of making the semi-finals were well and truly dashed as the Canadians beat them 29-0 before the New Zealanders humiliated them 41-0.
Two tries from Phil Burgess and one from Mitchell sealed the bronze medal win over a South African side left stunned by their golden point last four loss to the Fijians.
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Australia's Emma Tonegato put the match out of reach in the second half, scoring a pair of tries for a 26-7 lead before the scoring was capped off by teammate Charlotte Caslick.