Konta, seeded ninth, won nine games in a row on her way to beating the Danish 17th seed 6-3 6-1 in 75 minutes.
It was an eighth successive victory for the Briton, who won the title in Sydney in the build-up to Melbourne.
Konta, 25, will face Ekaterina Makarova next after the Russian upset sixth seed Dominika Cibulkova 6-2 6-7 (3-7) 6-3.
"We played in the fourth round here last year and I think it was 8-6 in the third, so I am expecting a battle," Konta said.
"It will be tough, just like against anyone in any match, you don't have any easy matches any more."
Six-time champion Serena Williams - a potential quarter-final opponent for Konta - earlier beat fellow American Nicole Gibbs 6-1 6-3.After a tight start to the contest on Margaret Court Arena, Konta took control midway through the first set and powered away from Wozniacki.
The British number one's consistent aggression on serve, return and off the ground left the Dane struggling to find an answer.
A thumping drive volley gave Konta the first break of serve in game seven and she got the better of the Wozniacki serve once again to clinch the set.
A bewildered Wozniacki double-faulted twice to fall behind in the second set and in the end she did well to get on the scoreboard at all after going 5-0 down.
There was the odd sign of nerves from Konta as she closed in on victory but after double-faulting on her first match point, she converted the second to end the day with 31 winners to Wozniacki's six.
"I definitely played at a high level today," Konta said.
"Caroline really makes you work for it and doesn't give you anything so I am happy with my level.
"I knew it would be incredibly tough and I wanted to assert myself from the get go and play the match I wanted to play. What an amazing crowd, you guys were incredible."
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