The young Australian side was brave on Saturday but clearly outgunned.
After finishing second in Group B behind South Africa, the Australian team, featuring eight rookies, knocked off heavyweights Samoa in the quarter-finals before being overwhelmed 26-7 by a rampant New Zealand in the semis.
They rounded out the tournament with a 17-5 loss to South Africa in a play-off for third.
Australian captain Ed Jenkins said New Zealand had shown the standard needed to be a genuine force on the sevens circuit.
"They have probably been the benchmark over the last couple of years and they have been together for a long time," he said.
"We've got eight new players this year."
He said there was plenty of upside to his side's performance at the tournament, including the gutsy 14-12 quarter-final win over Samoa.
"There's definitely positives to come out of it and we can definitely improve," he said.
Coach Michael O'Connor said the tournament had given Australia confidence for the rest of the series, which moves to Dubai on December 2.
"New Zealand are a red hot side," he said.
"It gives us an idea of what sort of level we need to get to."
Fiji took out the final with a sparkling 26-12 win over New Zealand to claim honours in the first leg of the Sevens world series.
The Fijians showed their trademark flair to score from all parts of the field, thrilling the 16,661-strong crowd with their famous brand of fearless running rugby.
The win was sweet revenge for the side, who had lost to New Zealand on the opening day of the tournament.
After nullifying an early New Zealand raid, Fiji shot to a 7-0 lead when Setefano Cakau sold a dummy and raced 80m to score.
New Zealand's reply was swift with player of the tournament Tomasi Cama crossing out wide to cut the margin to two before his second try two minutes later put them 12-7 in front at the break.
However, Joeli Lutumailagi crossed to level the scores and when Emosi Vucago and Livai Ikanikoda scored in quick succession, Fiji had skipped away to a match-winning 26-12 lead.
Organisers were pleased with the success of the tournament, which was hosted on the Gold Coast for the first time after five years in Adelaide.
- AAP