A century stand between Cameron White (75) and Aaron Finch (52) paved the way for a menacing total of 213 for four.
That figure was ballooned by a short boundary on the eastern side, which Australia were effectively able to target to reach their second highest score on home soil.
Captain Stuart Broad was the best of England's bowlers, taking one wicket at a cost of 25 runs from his four overs, but elsewhere Danny Briggs and Jade Dernbach brought up unwanted half-centuries.
England made a miserable start as they fell to 51 for four after just six overs, before a stand between Joe Root and Jos Buttler gave England a glimmer of hope.
However, once England had lost Buttler and Root's wickets in quick succession with the chase at 100 for six, the chase looked a forlorn one and, despite an exhibition of batting from Ravi Bopara that saw him make a 27-ball 65, England were again humbled as they lost by 13 runs.