ENGLAND will have to beat New Zealand next weekend to reach the Four Nations final after a 16-12 defeat to Australia in Melbourne this morning.

Them men in red and white took a 12-4 lead in the first half but Australia were the smarter outfit in the second period and more clinical overall.

The Kangaroos dominated possession in the second period and Greg Inglis’ 65th-minute try proved to be the difference, but there was a controversial finish when Ryan Hall had a second try ruled out by the video referee in the final minute.

England looked sharp early doors, with the forwards laying the foundation for Matty Smith’s kicking to peg the Aussies back.

A couple of penalties, resulting in Liam Farrell and Sean O’Loughlin going on report, did Steve McNamara’s men no favours though.

The opening arm wrestle continued until the Kangaroos made the first break of the game in the 16th minute and finished off clinically.

Greg Bird tore through a huge hole off Daly Cherry-Evans between Joel Tomkins and Josh Hodgson. He had support in Michael Jennings, who stepped and stumbled around Sam Tomkins and still had enough momentum to beat Hodgson over the line.

Cameron Smith missed the conversion from close to the sticks on his home ground.

Penalties conceded in the home half were continuing to let the Aussies off the hook.

Chris Hill’s powerful surges were starting to put England on the front foot leading up to England’s first try.

A scintillating kick return of 50 metres from Ryan Hall was continued by Daryl Clark for another 40 metres, the hooker electing to stick instead of passing to Gareth Widdop and he ended up being dragged into touch illegally by Greg Inglis six metres from the try line.

From the penalty, England drove in once through George Burgess and then swung the ball wide to the right where Kallum Watkins touched down off a Sam Tomkins pass. Gareth Widdop added the conversion from wide out to make it 6-4 after 30 minutes.

A second converted try in four minutes, this time from Hall off a brilliant Dan Sarginson offload from a repeat set caused by Inglis fumbling a high kick, put England in charge.

The Kangaroos squandered a try opportunity minutes before half time when Jennings slipped past Watkins but his pass round Josh Charnley found the touchline instead of the unmarked Josh Mansour.

Then England broke from deep again, James Graham releasing Sam Tomkins down the middle and Clark was there again to continue the move but as Mansour closed him down 10 metres from the Aussie line the hooker’s pass to Widdop was poor and the chance was ended.

A sixth-tackle running play by England almost brought another score, Sam Tomkins, Widdop and Tom Burgess combining but the final ball from the big prop to Clark was inaccurate and the hooker was heavily marked in any case five metres from home.

Inglis thought he had pulled four points back for Australia in the 47th minute when he exploded on to a pass from Cherry-Evans but Boyd Gardner had obstructed Smith in the build-up so video referee Bernard Sutton cancelled the effort.

Tim Sheens shrewdly threw on an extra half back for Australia and it paid off immediately.

After Inglis was stopped short by Sarginson and Widdop, Smith threaded a little kick over the line and debutant Ban Hunt pounced. Smith’s conversion put Australia within two points after 57 minutes.

A George Burgess knock on close to the try line on the second tackle gifted possession back to Australia, who were gaining in momentum.

They spotted weakness in the England defence, Josh Hodgson wounded on his haunches and it was he who failed to make the tackle on Cherry-Evans as he sped by and sent Inglis over in the 65th minute, with Smith’s conversion putting the Kangaroos in front with a 16-12 lead that they never lost.

Hall had a little finger on top of the ball over the try line from a Liam Farrell grubber kick in the final minute but the winger was not considered to have control in a controversial finish.

It leaves England and Australia both on two points, with New Zealand, who beat Samoa 14-12, on top of the ladder with four points and it means points dfference could be crucial on the final weekend.

England: Sam Tomkins; Josh Charnley, Kallum Watkins, Dan Sarginson, Ryan Hall; Gareth Widdop, Matty Smith; George Burgess, Josh Hodgson, James Graham, Liam Farrell, Joel Tomkins, Sean O’Loughlin. Subs: Daryl Clark, Brett Ferres, Tom Burgess, Chris Hill.

Australia: Greg Inglis; Josh Mansour, Michael Jennings, Dylan Walker, Sione Mata’utia; Daly Cherry-Evans, Cooper Cronk; Aaron Woods, Cameron Smith, Sam Thaiday, Beau Scott, Greg Bird, Corey Parker. Subs: Boyd Cordner, Ben Hunt, David Klemmer, Josh Papali.

Attendance: 20,585