Over 1,200 people danced for three minutes on the song, led by Malaika Arora Khan, who featured in the original song as well.
The event was organised by Indian Film festival 2011 director Mitu Bhowmick Lange to promote Bollywood in Australia.
The song was played at Melbourne Park on the weekend with over 1,200 people dancing together.
Malaika received a certificate for setting the record on Sunday.
"It's been amazing to see such a large crowd come together and dance with same steps on this exciting number," Lange said.
The earlier record was set in Singapore when over 1,008 people danced to a song.
Malaika was accompanied by her husband Arbaaz Khan and their son. The gala evening was also attended by Vidya Balan, director of No One Killed Jessica Raj Kumar Gupta, director Kabir Khan and Pakistan pop singer Ali Zafar.
He crafts miniature machines, enters Guinness Book
Raj Kumar Gupta on directing No One Killed Jessica
Rapchik Romance, Rajkumar Gupta's next
Spotted: Malaika Arora Khan in New York
What turns on Malaika and Neha