Australia 21-50 New Zealand
New Zealand recorded their highest points total against Australia as they crushed the world champions in Sydney.
All Blacks winger Joe Rokocoko grabbed three of his side's seven tries in a hugely impressive win at the Olympic Stadium.
Australia, who were sliding to their second defeat of this year's Tri-Nations, were completely outclassed.
New Zealand, on the other hand, were simply awesome and are firm favourites to emerge victorious in the three-team competition.
The All Blacks went on the attack from the first whistle but it was the hosts who scored the first try.
Tries: Burke, Sailor, Rogers
Pens: Burke 2
New Zealand 50
Tries: Rokocoko 3, Howlett, Umaga, Carter, Mauger
Cons: Spencer 2, Carter
Pens: Spencer 3
In a game of stunning scores, it was as good as any, with Matt Burke finishing off a flowing move that went three-quarters the length of the field.
It took the All Blacks 21 minutes to cross the line for the first time, with the 20-year-old Rokocoko skinning Wendell Sailor - who was later sin-binned - on the outside.
However, a penalty apiece meant the sides were locked together at 8-8 approaching the half-hour mark.
New Zealand looked the most threatening, though, and they scored two excellent tries before the break, through Doug Howlett and Rokocoko.
Carlos Spencer stretched the visitors' lead with a succession of penalty kicks and stroked over the conversion when Tana Umaga scored their fourth try after 50 minutes.
Daniel Carter, on for Spencer, then dummied his way over to extend the advantage.
Sailor (right) was yellow carded for taking out the airborne Muliaina
Sailor hit back with a magnificent individual try for the shell-shocked Wallabies, only for his opposite number, Rokocoko, to complete his hat-trick.
The young winger now has 10 tries in just five appearances for the All Blacks.
Mat Rogers glided over for Australia's third try with two minutes remaining but the final word went to New Zealand.
Aaron Mauger danced over by the posts and his conversion brought up the half-century as the All Blacks confirmed their status as the most exciting team in the world.
Australia: Burke, Sailor, Rogers, Flatley, Tuqiri, Larkham,
Gregan, T. Kefu, Waugh, Smith, Vickerman, Giffin, Noriega,
Cannon, Young. Replacements: Freier, Darwin, Sharpe, Finegan, Whitaker,
S. Kefu, Latham.
New Zealand: Muliaina, Howlett, Umaga, A. Mauger, Rokocoko, Spencer, Marshall, Collins, McCaw, Thorne, Williams, Jack, Somerville, Mealamu, Hewett. Replacements: Hammett, Meeuws, Thorn, Holah, Devine, Carter,