The main beneficiaries were Group A rivals and tournament hosts England, who launched this year´s edition with an eight-wicket win over Bangladesh at the Oval on Thursday.
The Blackcaps will consider themselves a little unlucky as they seemed to have the upper hand with Australia - chasing a revised target of 235 in 33 overs - reduced to 53/3 in nine overs.
John Hastings of Australia celebrates with Glenn Maxwell after taking the wicket of Luke Ronchi of New Zealand.
Both the teams took one point each post the Aussie batting line-up struggled to face the New Zealand pace attack in the first nine overs.
While batting first, Bangladesh scored 305 runs for 5 in 50 overs with Tamim Iqbal's 128 runs innings, recording his second Century against England and overall ninth.
Josh Hazlewood was the chief beneficiary as several batsmen holed out, with the fast bowler returning ODI best figures of six for 52.
Having fully recovered from a foot injury, the veteran player Starc will be the leader of the cricket match and when last time he led the match at 2006 and 2009 emerged as winners.
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The all-rounder was followed off the pitch by the rest of the players though as the heavens opened again to curtail the match.
Defeat to the Tigers, who have lost 18 of 19 meetings between the nations since 1990, will leave Australia needing to beat England next Saturday and other results to go their way to reach the semi-finals. We've been briefed by our security team this morning, and they are comfortable with where security is at.
The redoubtable John Hastings did retain some control in the middle overs for his side, alongside the offspin of Travis Head and the experienced Victorian seamer ended the unsafe innings of Luke Ronchi for 65 off 43 balls.
"It's obviously not ideal for both sides to have a washout", Smith said.
Starc had 26 dot balls, Hazlewood 31 - Starc was smacked for six fours, Hazlewood eight. Ross Taylor proved an apt foil and the pair shared a third-wicket stand of 99.
Later, Adam Milne caught and bold Moises Henriques in the last delivery of eighth over of the match.
Further rain during the mid-innings break left Australia with a tough new target under the Duckworth-Lewis-Stern method. And for us, our focus is on this tournament, and it needs to be, because we're coming up against some good opposition. Starc's underarm throw and Matthew Wade's fumble saw them botch a certain run out with Ronchi stranded, then Starc dropped him at mid-on.
Poor performance: Smith was quite clear that he needs his bowlers to do better if they are to win their next match.