Sheet the responsibility for the 68-run loss squarely on the performance in the field as Australia wriggled off a large hook at 92 for four to make 324 for eight.
As well as Martin Guptill batted, in making a splendid 114 off 102 balls, the challenge was always steep.
Had New Zealand won, they'd have had make their fifth highest score against Australia, and second in Australia only behind the 335 for five at Perth nine years ago.
"We probably didn't bowl as well as we could have in the middle stages and at the end," Guptill said last night.
"We've got training tomorrow to come up with plans to better ourselves.
We have an opportunity to go to Canberra and turn things around."
The bowlers collectively got their lines and length all askew as Australian skipper Steve Smith led a charge with the highest ODI score on the SCG, 164 off 157 balls.
His fifth wicket stand of 127 with Travis Head turned the contest on its head. Smith and Matt Wade then plundered a barely believable 83 off just 6.1 overs as New Zealand wilted badly.
There were precious few signs of a yorker or changing the pace of the delivery. Jimmy Neesham produced one awful over which included three wides and went for 15, while debutant Lockie Ferguson, left on at least an over too long, went for 16 off his last.
Three catches went down, two from Smith, while New Zealand were stung badly for their failure to refer an lbw appeal from Trent Boult - the pick of the New Zealand bowlers - which would have removed Smith on 14.
"We know we're better than that," Guptill said of the bowling slump which let Australia run away with the game.
"I can't put it down to one thing; it happens sometimes in cricket.
"They start to get a partnership going and momentum changes. We had it a couple of times in our innings when the momentum was with us. It was one of those topsy turvy games."
Guptill's 11th ODI ton, and first against Australia, left him satisfied in personal terms.
"I'll take that any day of the week," he quipped.
His timing was superb as he launched six sixes into the crowd to go with 10 boundaries. His departure at 185 for five was the decisive moment which turned a chance for New Zealand into a steep climb in pursuit of the win.
Only Grant Elliott, with 115 seven years ago, has previously scored an ODI hundred on the SCG. Guptill richly deserved his success.
He knew the task lay with him if New Zealand were to get up for what would have been a seventh win on the ground in 22 matches.
"I think whenever you are batting through - it was the 33rd over when I got out - it's just natural the onus goes on you to take it as deep as you can and put the team in a winning situation. Unfortunately I couldn't do that."
There were useful signs New Zealand will bat low in this series, with Colin Munro and Matt Henry late on chipping in. But 300 plus is always a high hurdle.
This time it was beyond New Zealand, but don't blame the batsmen for that.
