The Hockeyroos have missed out on qualifying for the International Festival of Hockey gold medal match after a 3-2 loss to Japan in Melbourne.
Relative newcomer Savannah Fitzpatrick scored a double for Australia who never held the lead on Saturday at the State Netball and Hockey Centre.
The Hockeyroos had needed to avoid defeat to clinch their spot in the final against the world No.1-ranked Netherlands.
Australia couldn't re-produce Thursday night's heroics when they fought back from 2-0 down to defeat the United States 3-2.
The result means the Hockeyroos will face the USA on Sunday from 1:15pm for the bronze medal.
"We need to have a better start than in the round games," Fitzpatrick said.
"We were slow to start in the first quarter. We need to start harder and score early."
Yuri Nagai put the visitors ahead in the third minute, but Fitzpatrick levelled barely a minute later after forcing the ball home from a rebound.
Japanese sharp-shooter Kana Nomura put the visitors ahead again with a fine shot from an 18th-minute penalty corner.
Fitzpatrick eventually equalised when she diverted a low ball home in the 56th minute, but Nomura struck again from a penalty corner two minutes later to clinch victory.
In the men's tournament, the Kookaburras have taken form into Sunday's final with a comprehensive 6-1 victory over Japan.
Blake Govers scored a double on Saturday night, while Daniel Beale, Jeremy Hayward, Josh Pollard and Tom Wickham all made it onto the scoresheet.
The impressive victory makes it three wins from three group games for Australia.
The Kookaburras had already clinched their spot in Sunday's decider, but the result determined their opponent.
Japan missed out by a goal, after New Zealand's 3-2 win over Pakistan earlier on Saturday.
The Kookaburras have won their past five encounters with the Black Sticks, including last month's Oceania Cup Final.
"We've played them four times in the last six days," Pollard said.
"They're a quality side, we'll do our research, get out there and put our structures in place. Hopefully we'll come home with the goods."
