Bellerive Oval was the venue for Scotland's final match in the 2015 World Cup.
With rain forecast Australia's captain Michael Clarke won the toss and had no hesitation in deciding to field first.
Scotland made one change from their previous match against Sri Lanka with Wardlaw replacing Evans.
Micthell Starc opened the attack for Australia and set the tone with a bouncer with his first ball to Kyle Coetzer.
MacLeod found the boundary twice off the bowling of Cummins in the second over before Starc in his second over got Coetzer caught by Smith and it was 8 for 1.
Mommsen and MacLeod added 28 for the second wicket before MacLeod going to cut a short delivery only found the hands of David Warner at backward point off the bowling of Starc.
This brought Machan to the crease and he was the only batsman to provide any real resistance with the bat top scoring with 40 runs as Mommsen and Coleman went without scoring and Berrington for one to leave Scotland in deep trouble at 51 for 5 before he was the seventh wicket to fall.
Only Davey (26) and Leask (23) made any impression for the lower order as Scotland was dismissed for 130 in the twenty sixth over.
The batsman had no answer to the pace attack of Man of the Match Starc who returned figures of 4 for 14 from 28 balls and Cummins with 3 for 42.
Australia in reply sprung a surprise with Clarke opening the batting with Finch in place of David Warner probably to give the Aussie captain some time in the middle.
Finch survived a dropped chance in the second over to make 20 from 10 balls as the hosts looked to finish the match in quick time as rain threatened.
The openers put on 30 before Finch was caught by Coleman off the bowling of Taylor.
Watson joined his skipper and they continued to chase the runs adding 58 in nine overs before Watson was caught by Matthew Cross behind the stumps and four runs later Clarke was out for 47 brilliantly caught by Leask who ran to his right and took a diving one handed catch.
It was 92 for 3 and the players had to leave the field as the rain fell.
After a lengthy delay play resumed with Australia still needing 39 runs for victory.
Warner was the new batsman and he set his stall out by hitting Wardlaw for a six first ball following it up with a four.
This enabled the hosts to romp home to their target and a seven wicket win in the sixteenth over.
Australia now has a quarter final match to look forward to and Scotland must now recharge their batteries before they host the World Cup T20 qualifiers with Ireland later in the summer.