The defending champion and host nation produced their best performance in six matches, after earlier losses to New Zealand and India proved fatal to their chances of winning a sixth title, reports The Australian.
Australia became the first team in the current tournament to bowl England out, dismissing them for 161 in the 50th over.
It was England's first loss in 21 one-day internationals, but it was a hollow victory for Australia, who knocked off the modest target in 34.5 overs.
Australia's only chance of making the final rested on Pakistan upsetting New Zealand, but the White Ferns effectively sealed their spot with an extraordinary batting performance.
New Zealand blasted 7-373, the highest score of the tournament with youngster Suzie Bates slamming 168 off 105 balls and featuring in a double century stand with captain Haidee Tiffen (100).