Terrific composure from Black Caps' bowler Tim Southee has combined with some hefty hitting from Aussie Cameron White to produce a pulsating Twenty20 match at AMI Stadium in Christchurch, with New Zealand prevailing in a sudden-death tie-breaker over.
Ultimately it was Southee's breathtaking super-over, which conceded only six runs for the loss of David Warner's wicket, that won the Kiwis the game.
Shaun Tait was entrusted with Australia's super over bowling to New Zealand's man-of-the-match Brendon McCullum, the scorer of a stunning century in New Zealand's innings, and Martin Guptill.
New Zealand survived two close run out chances but Tait buckled under the pressure and bowled two wides and it was Guptill who cut the third legitimate ball for the winning boundary.
New Zealand had earlier set Australia a target of 215 to win, the first time it had conceded more than 201 runs, and the chase went right down to the last over with the crowd of 26,148 roaring in support.
Southee was entrusted with the last over having only 12 runs to play with.
In the 18th over Southee had conceded a single per ball and another controlled display in the last saw him concede the 12 runs and set up the play-off.
White hit 64 from 26 balls while captain Michael Clarke was run out off the last ball for 67 after playing a superbly controlled innings.
David Warner made his usual rocket-propelled start, taking full toll of Southee's bowling in the early overs.
But it was Southee who ran back to take the catch from Shane Bond's bowling to end his 10-ball innings in which he scored 20.
Haddin (43 off 36 balls) got stuck in and helped add 73 runs for the second wicket before he fell caught in the deep from the first ball Franklin bowled in the innings.
David Hussey departed early bowled by Franklin, and was replaced by Cameron White.
The quick wicket didn't diminish the quality of Australia's assault, as White used his outstanding timing of the ball to effortlessly hit out against the New Zealand bowlers Vettori, Nathan McCullum, Franklin and Bond.
With three overs left, Australia needed 36 with Bond and Vettori bowled out, but Southee stepped up and bowled a tight over which relinquished only six singles.
It set a tough example for Oram to follow. Two singles, including a possible run out chance, were followed by successive straight drives for four by White. Oram conceded a wide which was enough to give White the chance to post his half-century next ball with a six, the milestone coming off 21 balls.
Earlier, McCullum matched West Indian Chris Gayle's effort in taking 50 balls to reach 100 and hit 12 fours and six sixes in the process but couldn't score the two runs needed to break the world record.
It was only the second Twenty20 international century in the brief history of the new form of the game and it was the first time New Zealand had hit 200 in Twenty20 matches.
McCullum unleashed his innovative falling away scoop shot on either side of the wicket to make full use of the wide open spaces behind the wicketkeeper. But none was better the ball after he achieved his century when he played the shot for six runs off fast man Shaun Tait – a shot he repeated later in the over for another six.
He found a