Cardinal Prevost will be known by the name Leo XIV and is the first American to be appointed to the papacy.
Australian Catholic Bishops Conference president Archbishop Timothy Costelloe offered the Catholic church in Australia's heartfelt congratulations.
"Cardinal Prevost brought to his most recent role as Prefect of the Dicastery for Bishops an approachability and willingness to listen which were no doubt developed throughout his many years as an Augustinian missionary in Peru," Archbishop Costelloe said.
"He will be warmly welcomed by the Church in Latin America, as Pope Francis was, by the Church in the United States from where he comes, from the English-speaking world as a native English speaker, and from the whole Church as a man of God steeped in the rich spirituality of his Augustinian Religious Order."
Archbishop Costelloe said the new Pope would guide the Church with renewed hope and strength.
"Recent Popes have sought ways to be of service to the wider Christian family and we can expect that Pope Leo XIV will follow this same path.
Catholic Social Services Australia executive director Jerry Nockles said Pope Leo's appointment came at a critical time when the world yearned for compassionate leadership grounded in gospel values of justice, dignity and solidarity with the vulnerable.
"At a time when Australia and indeed the world faces unprecedented social challenges - from growing inequality to escalating violence and social division - Pope Leo's election offers a beacon of hope and a powerful reminder that the church stands firmly for peace and with those on the margins," Dr Nockles said.
"His voice will undoubtedly challenge us all to build a more just and peaceful society where every person's dignity is honoured, and peace is actively pursued."
Cardinal Mykola Bychok was the sole Australian representative at the conclave in Rome.
Archbishop Costelloe and Sale Bishop Greg Bennet have indicated they will travel to Rome for the installation representing the Australian Catholic Bishops Conference and the church in Australia.