Taylor, who played under Matildas coach Alen Stajcic for Sydney FC, scored all three goals to put England, who is ranked sixth in the world, on top of Group B.
The Matildas found themselves two goals behind early on despite some early pressure.
Taylor pounced with an unstoppable strike from outside the penalty area to give England the lead in the 8th minute and then struck again in the 17th minute, this time expertly lofting the ball over the head of goalkeeper Brianna Davey.
The Matildas tried to force their way back into the contest, with striker Michelle Heyman and Clare Polkinghorne almost pegging a goal back in the second half but it was Taylor who would cap off a memorable afternoon as the English striker completed her hat trick in the 84th minute capitalising on a defensive mix up at the back.
Stajcic made three changes to the line up from the win over Netherlands with Laura Alleway partnering Polkinghorne in the centre of defence, while Larissa Crummer and Alanna Kennedy also started.
After the match, a disappointed Stajcic said it was a game his team would need to learn from going into June’s FIFA Women’s World Cup 2015 in Canada.
"There were some good patches but there were a lot of lessons to be learnt, we got caught on the hop in the first 15 minutes and it was a naive performance both with and without the ball," Stajcic said.
"We probably had about 70 per cent of the possession and 70 per cent of the chances but our execution wasn’t as good as theirs and it was a big learning experience against a style of play that we need to do better against."
In the other group match, Netherlands and Finland played out a goalless draw.
Australia will take on Finland in its final group match on Tuesday (2.30am AEDT).
Matildas starting line-up: Brianna Davey (gk) (Mackenzie Arnold (gk) 74’), Servet Uzunlar (Hayley Raso 71’), Clare Polkinghorne, Laura Alleway, Steph Catley, Elise Kellond-Knight, Alanna Kennedy (Nicola Bolger 61’), Katrina Gorry (Emily van-Egmond 61’), Larissa Crummer (Caitlin Foord 71’), Michelle Heyman (Kyah Simon 85’), Lisa De Vanna.
Substitutes not used: Collette McCallum, Gema Simon, Ashleigh Sykes, Kate Gill, Teresa Polias