The loss means Australia needs to win five of the remaining six matches in the multi-format series to reclaim the Women's Ashes trophy.
Chasing 185 for victory, the Southern Stars were in big trouble at 5-57 entering the fourth and final day.
A 44-run partnership between Ellyse Perry (31) and Sara Elliott (29) gave the Southern Stars hope as they moved the score to 5-99.
But Perry's departure sparked a collapse of 3 for 7 as Australia was bowled out for 123 shortly before lunch.
Three one-day international meetings and three Twenty20 games remain, with two points available for a win for each game.
Holders England need only win two of the six games to retain the trophy while Australia are tasked with winning five games from six.
The next appointment is an ODI at the MCG in Melbourne on Sunday.
--IANS (Posted on 13-01-2014)