The task facing the Australian women's team in defending the inaugural Olympic title won in 2016 was highlighted when they lost to New Zealand by 34-5 then 26-5 in their rematch.
Michaela Blyde and Portia Woodman starred for the Black Ferns as the Aussies failed to contain the physicality and cohesiveness of their opposition.
The Australians also suffered an upset defeat to Fiji on Saturday and will need to focus on their defensive woes ahead of Tokyo next month.
Head coach John Manenti said the results may not show it, but he saw positives with the squad's improvement.
"I thought we stepped up across the park with our whole performance," he said.
"We worked really hard and made them work hard for their tries...we asked a few questions to them and probably probably should have asked a couple more.
"But ultimately, I thought we were much better tonight than we have been against New Zealand for a little while."
Fiji remained undefeated through the tournament to take out the men's competition, while New Zealand's Black Fern's won all of their matches on their way to the Oceania Sevens title.
PacificAusSports Oceania 7s Australian Women’s Fixtures:
Friday 25 June
Australia 31 defeated Fiji 17
Australia 37 defeated Oceania 7
Saturday 26 June
New Zealand 34 defeated Australia 5
Australia 12 defeated by Fiji 19
Sunday 27 June
Australia 32 defeated Oceania 7
New Zealand 26 defeated Australia 5