The Matildas suffered a 3-0 loss to women's world soccer champions Japan in a friendly match in Tokyo on Wednesday night.
Classy Japan, who are preparing for this month's Olympic tournament, dominated the game and created many more opportunities than Australia, who failed to qualify for the London Games.
The visitors had a good chance to get on the scoreboard in the first half but Kate Gill couldn't find the power to beat the Japan goalkeeper from close range following good work by Kyah Simon.
The home team took the lead with a 25th minute penalty after a foul by Australian defender Tameka Butt.
Japan doubled their lead on the stroke of halftime when a right wing cross was steered in from close range.
Japan tallied 11 shots to two and nine corners to one in the first half.
They continued to press after the break and had a shot deflect off Matildas defender Danielle Brogan onto the post.
It was a brief reprieve as Japan scored their third just before the hour from the ensuing corner, after Australia failed to clear the ball.
Simon had a rare shot for Australia in the 71st minute, but her long range effort was comfortably saved by the goalkeeper.
Inside the last five minutes, Japan had a goal disallowed for offside.
Matildas coach Tom Sermanni said his team was simply outclassed.
"It probably felt today the same way as teams feel when they play Spain or Barcelona where it was very difficult to get possession and when we got possession we found it very difficult to keep it," Sermanni said.
"We were really under significant pressure and we expected that to be honest because of the different stages the teams are at, but in saying that Japan played extremely well and we just weren't up to it.
"It think it was still a good chance for some of our younger players to see competition at this level and we've got to remember that we've given debuts to six players in our past three matches.
"We're at the very start of a rebuilding phase but I think we've got some great talent coming through."