England's Ryan Hall had a try controversially not given in the last minute of the 16-12 Four Nations defeat by Australia in Melbourne.
The hosts, who lost their opening game to New Zealand, came back from 12-4 down for a victory that leaves Australia, New Zealand and England still with a chance to make the final.
Australia had led through Michael Jennings but England went ahead through Kallum Watkins and Hall. Ben Hunt scored on his Australia debut and Greg Inglis went in for the win.
In the final minute, Hall got on the end of Liam Farrell's kick and seemed to touch down but the video referee ruled the ball had bounced up on to the winger's fingers.