At Melbourne, December 16 (day/night). Australia won by three runs. Toss: Australia.
New Zealand almost upset Australia, doing well to restrict them to 202. Taylor's 81 occupied 130 balls, and the home batsmen hit only five fours - and 100 singles. Steve Waugh, who struck three of those boundaries, retired on 25 after tearing a hamstring, and subsequently missed the first two Tests against South Africa.
Warne, with four for 19 from his ten overs, hindered New Zealand's reply. They needed 11 from the last over, bowled by McDermott. Morrison survived being given run out by umpire Len King - he convinced the official that the wicket had been broken prematurely - but still had to hit six off the last ball, which was beyond him.
Man of the Match: S. K. Warne. Attendance: 25,893.