The Blackcaps have been knocked from their perch atop the ICC one-day international rankings, after their capitulation in the second match of the Chappell-Hadlee series.
The second-straight loss sees England - with a rating of 119 - reclaim the No. 1 position with a 119 rating they lost to the New Zealanders back in May 2021, with the Blackcaps dropping one spot below (117)
With a win in the final match of the series, the Blackcaps could move back up to a 119 rating but would still be placed second. India, Pakistan, and Australia remain in the third, fourth and fifth spots respectively.
After winning the toss, the Blackcaps sent the Australians into bat and took advantage of the favourable bowling conditions at Cairns, dismissing them for just 196. But their response never threatened the Aussie total, as they were sent packing for just 86 runs.
The 113-run defeat came two days after a two-wicket loss at the same venue and secured Australia the Chappell-Hadlee trophy with a match to spare.
The 86-run total equalled New Zealand's lowest-ever total on Australian soil, extending their 13-year winless streak across the Tasman.
The Blackcaps' evening was personified by the dismissal of captain Kane Williamson, who was trapped in front of his wickets by a full toss from standout spinner Adam Zampa, which left even the Aussie himself baffled.
The skipper could only throw his head back in anguish on a night when nothing went right for his team's batsmen, one of a handful of "soft" NZ wickets to fall.
"Today I thought we were too soft in terms of our dismissals," said Williamson, whose 17 runs were the most of any NZ batsman. "We did need to try and weather the storm a bit.
"It was going to be a challenge, but if you could try and stick together.
"There wasn't a lot of scoreboard pressure, so you try to reverse that momentum later in the game and get through the tough spells."
Matt Henry and Trent Boult spearheaded another superb start for the Blackcaps, reducing the hosts to 4/26 in the ninth over.
When Steve Smith departed with the score at 8/117, the Blackcaps seemed on course to be chasing a paltry target. But a determined wag of the tail from Mitchell Starc (38 off 45 balls) and Josh Hazelwood (23 off 16) ensured a much more competitive total the Kiwis never looked like chasing down, with the Australian bowlers stifling the NZ batsmen.
"The new ball was quite challenging and Australia were just outstanding with the lengths they are able to hit, the pressure they built, and they got some early wickets as well," added Williamson.
"It is almost old-school one-day cricket where you are just trying to get through spells. As we saw, Australia were able to get two partnerships that were able to get them a competitive total, so certainly some lessons to learn."
Without a win in Australia since 2009, Williamson refused to buy into suggestions the Australians had a mental hold of the team in their own backyard.
"It's cricket, they are a very good side, they've played well and adapted to conditions," he said. "[But] we do need to be better than we were tonight."
The final match of the series takes place on Sunday.
