The Albanese government announced its decision on Thursday following earlier intelligence indicating the Iranian group was connected through criminal proxies to anti-Semitic attacks last year.
A Sydney deli was torched in October 2024, while the Adass Israel Synagogue in Melbourne was firebombed later in December.
Iran's foreign ministry described the listing as an "unjustified and insulting action" in a statement shared on its Telegram channel.
"This irresponsible action is in line with the gross error that the Australian government committed based on completely false and fabricated accusations by the security institutions of the Zionist regime (Israel)," the statement read..
Explaining its decision, Labor lashed Iran for the "cowardly" attacks it said were designed to "undermine and sow division" in Australia's multicultural society, by targeting the Jewish community to inflict harm and stoke fear.
Under a new legal framework allowing the government to respond to state-sponsored terrorism, the Islamic Revolutionary Guard Corps has become the first listing.
Dealings with the group are now criminal offences and people found in breach face up to 25 years in jail.
In August, the government expelled Iran's ambassador Ahmad Sadeghi in response to credible intelligence provided by the Australian Security Intelligence Organisation that found the group was behind the two terror attacks.
Jewish groups praised the listing as a "necessary step" to ensuring terrorism was not given a foothold on Australian soil.
The Islamic Revolutionary Guard Corps was set up to protect Iran's regime.
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