Hosts Australia had the upper hand against China without crafting the breakthrough, until 35-year-old Cahill pulled out a stunning bicycle-kick just after half-time.
The latest uber-strike from Cahill, whose World Cup volley against the Netherlands was short-listed for goal of the year, was followed by a trademark header for the 2-0 win.
Australia's victory ended an encouraging tournament from China, who won all three group games for the first time to end their 11-year absence from the knock-out stages.
"This is a big win for us, it's something that I knew deep down was going to happen before the game, because I believe in this team," said Cahill.
"I had to wait for my chance and I took two of them tonight out of three and I'm pretty happy."
The Socceroos deserved the win against a willing but outgunned Chinese side, who scrambled well in the first half but folded under the weight of possession enjoyed by the Australians.
- 'Sonaldo' -
==============
Earlier in Melbourne, Bayer Leverkusen's Son fought off the lingering effects of a flu bug to strike twice in extra time and see off Uzbekistan -- before being stretchered off due to sheer exhaustion.
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