The 38-year-old, who will be playing in his fourth World Cup, is joined by Millwall teammate James Meredith.
Other England-based players to make the cut include Brighton & Hove Albion goalkeeper Mathew Ryan, Aston Villa midfielder Mile Jedinak, Hull City's Jackson Irvine, Queens Park Rangers midfielder Massimo Luongo and Huddersfield Town's Aaron Mooy.
Tom Rogic of Celtic and Hibernian loanee Jamie Maclaren have also been picked by coach Bert van Marwijk, while the quartet cut from the original 27-man contingent are Fran Karacic, Josh Brilliante, James Troisi and Nikita Rukavytsa.
The Socceroos are in Group C and will play France in their first match on 16 June, before facing Denmark and Peru.
Australia's World Cup 23-man squad
Goalkeepers: Brad Jones (Feyenoord), Mat Ryan (Brighton), Danny Vukovic (Genk).
Defenders: Aziz Behich (Bursaspor), Milos Degenek (Yokohama F. Marinos), Matthew Jurman (Suwon Samsung Blue Wings), James Meredith (Millwall), Josh Risdon (Western Sydney), Trent Sainsbury (Grasshopper Zurich).
Midfielders: Jackson Irvine (Hull City), Mile Jedinak (Aston Villa), Robbie Kruse (VfL Bochum), Massimo Luongo (QPR), Mark Milligan (Al-Ahli), Aaron Mooy (Huddersfield), Tom Rogic (Celtic), Tim Cahill (Millwall).
Forwards: Daniel Arzani (Melbourne City), Tomi Juric (Luzern), Mathew Leckie (Hertha Berlin), Andrew Nabbout (Urawa Red Diamonds), Dimitri Petratos (Newcastle Jets), Jamie Maclaren (Hibernian).