Captain Steve Smith made a composed century to lead Australia to a thrilling three-wicket tri-series victory over England in Hobart.
Smith anchored the chase of 304 with an unbeaten 102 to get the home side over the line with one ball to spare.
Ian Bell’s 141 earlier saw him become England’s highest one-day run-scorer and took the tourists to 303-8.
Australia reach the tri-series final with a game to spare, while England next play India on 30 January.
Victory would put Eoin Morgan’s men through, while defeat may not necessarily rule them out of contention, depending on the outcome of the Australia-India game on Monday and any bonus points earned.
In a wider context, England have lost 12 of their last 14 one-day internationals against Australia, with this latest defeat coming against a side containing only seven players named in the squad that will feature when the two meet on the opening day of the World Cup.