The Kiwis claim their first T20I win in Australia, started by Devon Conway's unbeaten 92 and three wickets for Mitchell Santner
Sydney: New Zealand 200-3, Australia 111 - New Zealand won by 89 runs
New Zealand exorcised their demons by inflicting upon defending champions Australia their second-biggest men's T20I defeat by runs in the opening match of the Super 12s in the World Cup at the SCG.
Devon Conway struck 92 not out as the Black Caps, runners-up in the final 12 months ago, set 201 to win.
Mitchell Santner took 3 for 31 and Tim Southee 3 for 6 as Australia, who never threatened the total, were bowled out for 111 to confirm an 89-run reverse.
The victory is New Zealand men's first in Australia in a 20-over international and in any format since December 2011.
But it is a stunning result for Australia, the pre-tournament favourites, defending champions and hosts.
Food for thought for Aaron Finch (SAEED KHAN/AFP via Getty Images)
Eleven months on from their one-sided T20 World Cup final in Dubai, Australia and New Zealand were strongly fancied to reach the sharp end of the competition once again.
But it had been a patchy build-up for both, with Aaron Finch's side beaten by England and the Kiwis overcome by Pakistan in the tri-series final.
Once again, there was a large chasm between the two sides but it would be Kane Williamson's side who would come out on the winning side on this occasion.
From the moment Finn Allen took on Mitchell Starc in the opening over, the visitors' intent was clear.
Allen crashed a 16-ball 42, including three sixes, while Devon Conway was more considered in scoring an unbeaten 92.
Devon Conway hit 92, the highest score of the tournament so far (SAEED KHAN/AFP via Getty Images)
He and Kane Williamson put on 69 for the second wicket before Jimmy Neesham (26 not out) and Conway added 48 in 24 balls, as New Zealand finished on 200 for 3.
Australia would require their biggest chase in men's T20 World Cup history but they never looked like troubling the record books.
New ball pair Trent Boult and Tim Southee bowled with accuracy and skill from the outset, with the latter dismissing David Warner and Mitchell Marsh - the player of the tournament and the final, respectively, a year ago - inside the powerplay.
Mitchell Santner quite convincingly outbowled spin-bowling contemporary Adam Zampa, taking 3 for 31 - the highlight being a superb catch from Glenn Phillips to dismiss Marcus Stoinis.
Pat Cummins (21) produced a brief repost but Boult returned to clean up the tail, helping to dismiss Australia for 111 and confirm a historic victory for New Zealand; a result that will send shockwaves through the rest of the competition.