Ben Hollioake is stumped off Shane Warne for a duck

Chasing a revised total of 212 to win off 44 overs England's openers Nick Knight and Marcus Trescothick struggled against McGrath and Gillespie.

Knight edged a delivery outside his off stump through to wicketkeeper Adam Gilchrist to give McGrath the breakthrough and Stewart then failed to trouble the scorers.

He looped a poor pull shot off Gillespie into the hands of Michael Bevan at mid-on and Michael Vaughan followed to the next ball as Gillespie clean bowled the Yorkshire batsman.

Youngster Owais Shah became a third victim for Gillespie as an inside-edge on to the pad of the Middlesex man looped to Ricky Ponting at fourth slip.

And not to be outshone McGrath then went around the wicket to bowl Marcus Trescothick who had witnessed the carnage from the other end.

Warne was then introduced into the attack and in his first over he attracted Ben Hollioake down the wicket and had him stumped well out of his ground by Gilchrist.

Steve Waugh scored an excellent 64 for Australia

Despite some brief spirited defiance Dominic Cork holed out to Matthew Hayden on the deep mid-wicket boundary off the bowling of Symonds.

And Symonds soon accounted for Paul Collingwood with a terrific one-handed catch off his own bowling.

Warne then removed Darren Gough lbw for two as England's capitulation continued and Alan Mullally was the last to fall, caught behind off Ian Harvey.

Australia made 208-7 in 48 overs, but the Duckworth/Lewis method calculated that England must score 212 in 44 overs.

Steve Waugh top-scored for the tourists with 64 before he was trapped lbw by Darren Gough.

And his dismissal sparked two further quick wickets as Andrew Symonds and Ian Harvey fell cheaply in the space of three balls of an Alan Mullally over.

Andrew Caddick celebrates the wicket of Ricky Ponting

Waugh shared in excellent partnerships with Damien Martyn and Michael Bevan.

Martyn finished unbeaten on 51, while Bevan made 37 before being caught by Alec Stewart off Mullally.

Bevan and Waugh added 66 for the third wicket after Australia had made a poor start.

England's opening duo of Gough and Andrew Caddick reduced their opponents to 27 for three, as Hayden, Gilchrist and Ponting fell in quick succession.

Mullally (three for 50), Gough (two for 31) and Caddick (two for 45) were England's successful bowlers.

The defeat already confirms that Australia will meet Pakistan in the final.

England: AJ Stewart (Surrey, wkt & capt), ME Trescothick (Somerset), NV Knight (Warwickshire), MP Vaughan (Yorkshire), OA Shah (Middlesex), BC Hollioake (Surrey), DG Cork (Derbyshire), P Collingwood (Durham), D Gough (Yorkshire), AR Caddick (Somerset), AD Mullally (Hampshire).
Australia: SR Waugh (capt), AC Gilchrist (wkt), RT Ponting, DR Martyn, MG Bevan, A Symonds, ML Hayden, IJ Harvey, SK Warne, GD McGrath, J Gillespie.