After winning the toss and electing to bowl, stand-in skipper David Warner left England reeling at 3-34 in the fourth over when he ran out Dawid Malan with a brilliant direct hit.
Australia's man of the match Kane Richardson, who claimed three for 33, said: "It's a good feeling to win but in T20 teams can be hard to stop when they get a roll on".
An Australian Twenty20 side filled with fresh faces from the Big Bash booked their spot in the Auckland showpiece with a seven-wicket win in Melbourne, having previously blown away England and New Zealand.
But questions are bound to be raised about Warner's relentless schedule after he lasted just four balls in Melbourne, nicking a ripping David Willey outswinger on two. In front of 42,691 fans here, the Australian worldwide summer was closed in style with a dominant seven-wicket win, with 33 balls to spare. His stay was eventful but brief, ending with a top edge from the bowling of Chris Jordan that settled comfortably into the gloves of Buttler.
Morgan was a late omission for Saturday night's match at the MCG after straining his right groin at training on Friday.More news: Hazard: Champions League has affected Chelsea's Prem title defence
Tom Curran - 1/10 - The young seamer was only given two overs as Lynn and Short took him for 23 from his spell.
These early blows caused England to pull back on their customary aggression, but the fall of regular wickets meant this policy did not work particularly well either.
They limped along to 67 for four at the halfway stage of the innings, Morgan's replacement James Vince chipping in with 24 before losing his off stump to a slower ball from Andrew Tye.
Marcus Stoinis - 6/10 - Whilst he did not get the chance to perform with the bat due to Australia's explosive top order display, Stoinis performed very well with the ball.
But Stanlake brought the partnership to an end when David Warner latched on to a miscued shot by Billings at mid-off. Australia chased down the target in 14.3 overs, and have qualified for the final of the tri-series.