Since December 2016, more than 400,000 positions have been created, three quarters of them full-time jobs.
"Throughout 2017, the Commonwealth continued to experience steady economic growth, adding 63,000 jobs, over 64,000 additional residents participating in the labor force, and closing out the year with a low unemployment rate of 3.5 percent", Labor and Workforce Development Secretary Rosalin Acosta said in a statement.
The underutilisation rate has fallen to 13.7 per cent, down from 14.7 per cent at the beginning of the year.
The rate was 3.2 percent in November, which means 6,800 people got off unemployment in December.
The Australian dollar fell on the news, dropping as low as 79.44 U.S. cents from 79.7 United States cents ahead of the 11.30am data release, before recovering some ground to 79.6 USA cents at 12.50pm.
That increase of the past year equates to a 3.3 per cent rise in employment - nearly double the year-on-year average over the last 20 years of 1.9 per cent. At 3.20pm AEDT, it was fetching around 79.55 United States cents.
Labor's employment spokesman Brendan O'Connor.
"The big lift in employment over December once again bettered consensus [15,000+] and once again the underlying detail was robust", he said.
The number of jobs added in Australia is a key statistic for economists, businesses and the government.
A steady pick-up in business sentiment has helped an acceleration in job creation over the a year ago.
"The best form of welfare is a job", she said.
Preliminary estimates show unemployment in Wisconsin reached a record low in December.
Smaller growth rates were recorded in wholesale and retail trade (2.9 per cent); educational services (2.1 per cent); and health care and social assistance (1.3 per cent).