Captain Heather Knight missed the game with a low-grade hamstring strain but her stand-in Dani Hazell was powerless as Meg Lanning and Elyse Villani put on 139 for the fourth wicket to take their side to the record total.
England made 152/9 in reply, with Nat Sciver making a half-century.
Despite the Aussie fireworks it was a dream start with the ball for England, Tash Farrant trapping Beth Mooney leg-before in the first over.
Ashleigh Gardner and Alyssa Healy disregarded the early wicket to take advantage of the powerplay and leave the score at 52/1 after six, at which point England fought back and began to form a foothold in the game.
Gardner was dismissed by Jenny Gunn – courtesy of a fine, tumbling catch by wicketkeeper Amy Jones – and Healy was then clean-bowled in the same over.
It was a great start from Gunn but that brought Lanning and Villani together and the pair grew into the innings, attacking the second 10 overs to race away.
England have certainly had better days in the field with a couple of missed chances but it was an exhibition from the Australian duo, Lanning in particular showing what a fine player she is.
Australia recorded 34 fours in the innings, a record in either men’s or women’s IT20 cricket, and England knew they’d need a special chase to end up on the winning side.
They did have the knowledge that they’d chased two record totals in their last five IT20s and much probably relied on Danni Wyatt – a centurion on both those occasions.
She started with a four but the very next ball saw her partner Bryony Smith lose her footing and be run out at the non-striker’s end.
Tammy Beaumont followed her back after getting a thin edge driving at Ellyse Perry but Nat Sciver and Wyatt carried on trying to make the most of the powerplay.
When Wyatt was caught at cover in the sixth – after making 34 from 17 – it remained a tall order for England. Amy Jones and Nat Sciver rebuilt, and put on 50, but the rate was always rising.
Jones was dismissed for 30, her highest It20 score, and Sciver went on to make 50 but England’s hopes of winning had vanished with the total almost mathematically insurmountable for much of their chase beyond the 10-over mark.
Australia went on to win by 57 runs and with it claim the IT20 Tri-series.
It’s been a tournament of two halves for Mark Robinson’s young side. So impressive at the beginning they’ve struggled to back that up in the latter portion of the tournament and Robinson’s assertion that his side’s IT20 cricket needs to improve seems a fair assessment.
Despite the defeat he will be pleased to have learned about his players. There have been glimpses of talent from the new faces and some reliable performances from a few of his more regular performers but he’ll be seeking more complete team efforts – with bat and ball – when England next play the shortest form in June.
The team will now travel to Nagpur for a three-match ODI series against India.