Australia won the series 3-1 with an inspired performance from Stuart MacGill, who took seven for 50 as England were bowled out for 188.

Alec Stewart: Disappointed but not depressed at the Sydney defeat

Afterwards Stewart admitted the team had not performed well in the first three Tests.

But he insisted the win in Melbourne and a competitive performance at the SCG was a better indication of the side's potential.

"In the first half of the series we under performed and because of that the Ashes had gone," he said after Australia had wrapped up the series.

"But in the last two Test matches we fought back well. We deserved to win in Melbourne and here we've lost but we can still take a lot of credit," said the captain of his first overseas series.

"Australia are the best side in the world. I said we had to play to our full potential to compete with them and the first two or three Test matches we didn't do that.

"We have just got to reach a consistent level to be able to compete with sides like Australia."

Alex Tudor: 'Big strides'

Stewart singled out the emergence of fast bowler Alex Tudor and a number of established players' performances as encouraging signs.

"As a young player Alex Tudor came across as the 17th person, but he's made big strides towards a Test career.

"Mark Ramprakash and Nasser Hussain have been outstanding all tour and Dean Headley, who didn't play in the first couple but came back to bowl the way he did is tremendous.

"Darren Gough bowled well throughout the series without luck and finished up with 20 odd wickets and probably nine or 10 missed chances."

Bad luck cost us - Lloyd

Coach David Lloyd gave a hard luck story as the reason for the margin of defeat.

"We couldn't have done any more today I don't think. The toss was absolutely vital and coupled with the Adelaide one as well," said Lloyd.

"But its been a memorable game of cricket, one of the truly great games for me."

Lloyd was also encouraged by England's positive attitude at Melbourne and the SCG but feels England need to be more aggressive.

"I want us to be more in the face and I want us to hustle a lot more and have more intensity but I think we're getting there," he said.

The coach again played down speculation that he could quit the "best job in the world" and said talks about his contract were planned before it finishes in September.

Mark Taylor: Admitted toss wins were important

Triumphant Australian captain Mark Taylor confirmed that this was his last Ashes series.

And he conceded that the tosses at Adelaide and the SCG were crucial.

But he refused to be drawn into the debate over whether Stuart MacGill's 27 wickets in the series meant he had dislodged Shane Warne from his perch as top spinner.

"I don't want to draw any conclusions. Stuart bowled absolutely superbly in this series and throughout the series he's got better as it went on.