The Swedish manufacturer is recalling the vehicles over concerns that the engine may suddenly shut down and restart while driving.
As a result, the vehicle's power steering system can briefly cut out, while the driver's digital instrument cluster and infotainment system may also switch off.
This is the second recall for the XC60 in nearly seven months, with four-cylinder petrol automatic models recalled last September for a faulty fuse in the starter motor.
Affected XC60 vehicles are between VIN range 775048 to 905018, V60 Cross Country vehicles are in the VIN range 003024 to 017727 and affected XC70 vehicles are between the VIN range 235012 to 260313.
Owners of affected vehicles will be contacted directly by mail.
For more information, customers can contact Volvo Australia on 9020 1600.