Graeme Swann and Michael Yardy picked up two wickets a piece to spark a middle order collapse which helped England come out on top after restricting Australia to a total of just 147-7 at the MCG.
The spinners came into the attack at the end of the power play overs with a great effect to halt an Australian charge with was led by David Warner (30) and Time Paine (21).
After a fantastic start the Aussies collapsed to a total of just 80-5 before Steven Smith (13) and Aaron Finch (51) shared a 6th wicket stand of 51 to give the home side fresh hope.
Having won the toss Australia got off to another good start during the power play overs with openers David Warner and Shane Watson unsettling the England bowlers during an opening stand of 37.
Watson (17), having already smashed two huge sixes into the crowd looked set for another big score but the tables were turned at the start of the 5th over when he was caught by Eoin Morgan at deep square leg off the bowling of Chris Woakes.
Wicket keeper Tim Paine, picked ahead of Brad Haddin added a quick fire 21 to help Australia reach a total of 57-1 after the opening 6 overs of the fielding restrictions.
The course of the game changed however with the introduction of Graeme Swann who came into the attack in the 7th over to pick up the wicket of Paine from just his 5th delivery of the match to leave the Aussies 63-2.
England further increased the pressure on the Aussies by removing Warner (30), Cameron White (0) and a pedestrian David Hussey, 8 from 16, as Yardy (2-19) and Swann (2-19) tore through the middle order.
The sudden collapse left the Aussies, who came into the clash at the MCG on the back of a 5 game international t20 losing streak 80-5 after 11.5 overs.
With the pressure mounting Finch lead a perfect rear guard action on his home ground with an impressive half century, his first for Australia to help the home side fight back.
Supported by Smith (13) and to a lesser extent Steve OíKeefe (1) the Victorian batsman smashed 4 fours and 2 sixes during his 33 ball innings to give to the Aussies fresh hope of ending Englandís 8 game t20 international wining streak.