Olive Riley "passed away peacefully on July 12 and will be mourned by thousands of Internet friends and hundreds of descendants and other relatives," a note on her website said.
Riley had posted more than 70 entries on her blog from Woy Woy on the east coast since February last year, sharing her thoughts on modern life and her experiences living through the entire 20th century.
Born in the outback town of Broken Hill on October 20 1899, she lived through two world wars and raised three children while doing various jobs, including ranch cook and barmaid.
In her final post on June 26, she wrote: "I can't believe I've been here in this nursing home for more than a week.
"How the days have flown, even though I've been in bed most of the time. I still feel weak, and can't shake off that bad cough.
"Penny, who's in the next bed to mine, had a visit one day this week from her daughter, who's a professional singer. Guess what happened! She and I sang a happy song, as I do every day, and before long we were joined by several nurses, who sang along too. It was quite a concert!"
Riley's blog, initially on www.allaboutolive.com.au and more recently at http://worldsoldestblogger.blogspot.com, was "mind-blowing to her," her great grandson Darren Stone said.
"She had people communicating with her from as far away as Russia and America on a continual basis, not just once in a while," he told the national AAP news agency.
"She enjoyed the notoriety -- it kept her mind fresh."