The Matildas have snapped England's 30-match unbeaten run with a 2-0 victory in their friendly in west London.
Sam Kerr scored in the first half before setting up Charli Grant for her first international goal as Australia handed the European champions their first loss in two years.
The Lionesses had recorded 27 wins and three draws since a 2-0 loss to Canada in April 2021, but many of the English players tasted defeat at the hands of the Australians at the Tokyo Olympics in 2021, when the Matildas beat Great Britain 4-3 in the quarterfinals.
Since then, England had won the 2022 Euros and a week ago beat Brazil on penalties in the UEFA Women's Finalissima, but it all came tumbling down against the Matildas.
Coming off a disappointing loss to Scotland on Friday, Australia was kept quiet for most of the first half against England in Brentford in west London before a mistake by captain Leah Williamson allowed her counterpart to pounce.
A long ball from Clare Hunt put Kerr in behind the defensive line and Williamson did not get enough on her attempted header towards goalkeeper Mary Earps, with Kerr swooping and chipping over the Manchester United keeper.
Not content with a 1-0 lead, Kerr turned provider just after the hour mark in the match, latching onto a through ball on the right wing before crossing into the path of a charging Charli Grant.
The 21-year-old headed firmly towards goal but was given some help, again from Williamson, whose attempt to stop the ball only deflected it to the right of Earps as she dove left.
It was Grant's first goal for Australia and her elation was clear as her teammates swarmed her in celebration.
The Matildas kept the pressure until the final minutes, when England launched an all-out attack in the hope of a miracle, but none was forthcoming as Australia's defence held firm.
The only bad news for the Matildas were apparent injuries to Tameka Yallop (ankle) and Cortnee Vine (calf), while Kerr looked a little ginger as she came off in added time.
The Matildas have one more friendly booked in, against France at Docklands Stadium in Melbourne on July 14, before the first match of their home Women's World Cup against Ireland a week later.
Check out how the match unfolded in our live blog below.
Live updates
Update
Audience comment
Gustavsson has found a team that works here, very excited for the World Cup!!!
- Luke
Final thoughts
By Samantha Lewis
I'll have some analysis out later today on ABC Sport, but for now, this was the best possible response the Matildas could have had to that Scotland hiccup.
Sam Kerr adds a truly unspeakable amount to this team. Her pressing game, her off-the-shoulder runs, her ability to suck defenders out of position to create space for others. She's an irreplaceable member of the Matildas, and the reason why their attack clicks in the way that it does.
What Australia do without her is still a big question, so let's everybody send tweets to Chelsea to tell them to wrap her in bubble-wrap before July.
But beyond Kerr, there were so many other players this morning who shone.
Kyra Cooney-Cross was outstanding in midfield, Katrina Gorry was a workhorse, Clare Hunt and Clare Polkinghorne were a brick wall, and Mackenzie Arnold was commanding and assured. Charli Grant and Ellie Carpenter were basically mirror images of each other on either side, too.
"Almost flawless from the Matildas today," Andy Harper says on the broadcast. A fitting description for Australia's first win over England with this generation of players.
And you'd have to agree, even if the Lionesses may not have been as clinical or incisive as they can be.
It's a brilliant way to end this window, and will give the team a huge boost coming into their final friendly against France in early July.
And you can bet I'll be there to take you through it all!
Thanks again for waking up at a sparrow's fart to join me and a bunch of other football-mad fans this morning for this incredible match.
Until next time!
Update
Audience comment
YYYEEEEEEEEEEEEEAAAAAAAAAAHHHHHHH!!!!
- Natty
Full-time: England 0 - 2 Australia
By Samantha Lewis
And the Lionesses' 30-match unbeaten streak comes to a sensational end after a direct and disciplined performance from an under-strength Matildas team!
Goals to Sam Kerr and Charli Grant were the difference, scoring one in each half, but it was Australia's defenders who were the stand-outs today.
What an incredible achievement from the entire side to come back from that 1-0 loss to Scotland to take down the reigning European Champions and World Cup favourites!
93' England win a free kick in a dangerous area
By Samantha Lewis
Chloe Kelly is tripped over outside the box.
Georgia Stanway is standing over the set-piece, which is about 20 yards out...
But her free kick is straight at Arnold, who falls onto the ball in the grass.
93' Australia substitution
By Samantha Lewis
Alex Chidiac and Courtney Nevin are on for Kerr and Hayley Raso.
92' England chance!
By Samantha Lewis
Georgia Stanway tries to just barrel her way through some yellow shirts and put a frustrated foot through the ball.
It's a stinging shot but it flies just wide.
Just hasn't been England's day today.
92' Sam Kerr is limping
By Samantha Lewis
The Matildas captain walks gingerly off the field after some kind of collision somewhere.
She's run herself into the ground this game, so hopefully it's nothing serious.
90' Australia yellow card
By Samantha Lewis
Mackenzie Arnold - who's been brilliant - is also a master of the dark-arts.
She takes her time with a goal kick, refusing to move a second ball that had come onto the pitch somehow.
She picks up the first yellow of the game.
Lol.
88' England 0 - 2 Australia
By Samantha Lewis
Folks, I know it's early, but this is not a dream. The Matildas really are leading the reigning European Champions by two goals to nil.
86' Free kick Australia
By Samantha Lewis
Kyra Cooney-Cross is tugged backwards by Jess Park after intercepting a ball up-field.
The young midfielder has been sensational in this game. 21 years old, but you wouldn't know it. So composed and so technically sound. Every touch she's taken has been the right one.
The free-kick is sent deep but Mary Earps collects.
85' Australia substitution
By Samantha Lewis
Yep, the subtitute Vine is substituted herself.
Everton midfielder Clare Wheeler comes on for the final few minutes.
84' Cortnee Vine is down
By Samantha Lewis
The Sydney FC winger is grabbing at her right calf. Her expression won't give her club coach much faith less than a week out from their A-League Women semifinal against Western United.
Clare Wheeler seems to be ready to come on.
83' England substitution
By Samantha Lewis
Jess Carter is off, replaced by Jess Park.
Arsenal centre-back Lotte Wubben-Moy also comes on for Esme Morgan.
Update
Audience comment
Gustavsson should stick with the same 11 for the full ninety in addition to stoppage time. Cortnee Vine definitely making a case as a replacement for Yallop if she's out for the World Cup and the friendly against France along with Sam Kerr, Ellie Carpenter, so on and so forth.
- Adam
80' Ellie Carpenter now!
By Samantha Lewis
The right-back hasn't been making her characteristic bombing runs forward this morning: too concerned, perhaps, with trying to keep England locked in instead.
But she unleashes herself here, galloping up-field after a nice one-two with Kerr, finding acres of space in behind Jess Carter.
She tries to send the ball back to Kerr near the top of the box, but the Chelsea striker is smothered by Willliamson.
She spins and tries to feed Mary Fowler, who's run to the left from deep midfield, but the pass is just under-hit and cleared away.
78' Sam Kerr still making those runs
By Samantha Lewis
The Matildas skipper runs off the shoulder of Williamson, trying to latch onto a deep cross from Ellie Carpenter from the right, but the England captain is able to curve her body around the ball and send it away.
It's been a top battle between the two leaders tonight, though one will come out of this game feeling a bit better than the other, you'd think.
75' 15 minutes to go
By Samantha Lewis
Chloe Kelly sends an over-hit cross out for a goal kick, wasting some good build-up from the Lionesses.
The Matildas are still defending brilliantly, staying in two tight lines, pressing England's players as much as they can.
But something's gotta give. Australia's players are starting to tire - especially their fabulous midfielders. Tony Gustavsson will need to make some decisions in the next five minutes if he wants his side to keep up this intensity and hang onto their lead.
Who should he turn to here, folks? Does he need a game-changer? Or does he stick with what's worked so far?
72' Chance England!
By Samantha Lewis
Lucy Bronze sends one of her best crosses of the game towards the penalty spot, which is just too high for Clare Polkinghorne to head away.
Rachel Daly is stationed perfectly behind her, connecting well with the ball in the air, but her header bounces just wide of the far post.
The crowd gasps: that should have been on target, at the very least.
70' Twitter is loving this
By Samantha Lewis
