Australia defeated England by 36 runs to leave Jos Buttler's side staring down the brink of an early exit from the T20 World Cup.
With their opening match against Scotland having yielded no result, England needed to beat Australia on Saturday to propel themselves into a strong position to progress from Group B.
Yet instead they now find themselves fourth in the group and in need of big wins over Oman and Namibia to stand a chance, while also hoping for a capitulation from Scotland, who are second.
Chasing a target of 202, England were trundling along nicely until Adam Zampa (2-28) dismissed openers Phil Salt (37) and Buttler (42) in the space of two overs.
Will Jacks did not last long as Australia severely dented England's run rate, with the further quickfire dismissals of Jonny Bairstow and Moeen Ali all but ending England's chances.
And when Liam Livingstone was sent packing by Patrick Cummins late in the day, England knew their hopes of making it out of the group have suddenly turned bleak.
No player scored over 50 for either team, though David Warner (39), Mitchell Marsh (35) and Travis Head (34) were the leading lights for Australia with the bat.
Data Debrief: Aussies avoid four straight losses
Australia are now well placed to push on at the T20 World Cup, and getting one over their old rivals in the process is all the sweeter.
England had won six of their last seven completed T20Is against Australia, including their last three in a row, but Marsh's team pulled out the stops to avoid a fourth straight loss.
Zampa, meanwhile, just loves this tournament. He has taken at least one wicket in each of his last 12 innings at the T20 World Cup, including two in each of his last four innings.
Chris Jordan celebrated taking his 100th T20I wicket, but it proved fruitless.
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