Host nation France has won the 2006 U21 World Championship with a 24-13 victory over South Africa in front of a packed home crowd in Clermont-Ferrand.
In the third-fourth playoff New Zealand turned the tables on Australia with a 39-36 victory, after Australia won their earlier pool match by 21-17.
New Zealand began the match well, establishing an early territorial advantage, but it was Australia who proved more clinical with turnover ball.
Hooker Geoff Abram was the first to score after six minutes when he emulated the feat of Wallaby Greg Holmes just 24 hours earlier at Subiaco Oval. Abram snaffled up a loose ball, beat the defence and raced 60 metres to score near the posts.
A try from New Zealand winger Lelia Masaga brought them back into the match but Australia again proved themselves masters of the counter attack, Josh Holmes pouncing on a loose ball after a James Somerset break to take Australia out to a 17-5 lead after 20 minutes.
Again New Zealand's response was not long in coming. Masaga scored his second, then captain Jamie MacKintosh nudged his side into the lead at 18-17.
However Australia got the lead back when centre Anthony Fainga'a broke through to score. The conversion from winger Liam Bibo put Australia 24-18 up at the break.
Australia's lead was further strengthened immediately after halftime when flanker David Haydon scored for a 31-18 lead.
However New Zealand came storming back into the game. First an Australian defensive lapse allowed centre Stephen Brett in for a try then scrumhalf Alby Mathewson scored a fine individual try to put the Kiwis back into the lead at 32-31.
Lelia Masaga just missed out on a hat trick of tries, but Mikaele Tu'u scored to put New Zealand eight points clear. Australia captain Tatafu Polota-Nau, who was playing at Number 8, scored with a couple of minutes left on the clock to narrow the gap to three points, but New Zealand held out for the tight win.
"In the end, victory in this match came down to a few tiny details. We made some mistakes in defence but the players have given their all, " Polota-Nau said.
Chris Hickey, Australia coach said:
"In this match neither side was at its best. Our players are disappointed as they feel they had the opportunity to get to the final and win.
"I want to thank everyone who's helped with the pitches, the training pitches, the organisation. It's been a magnificent tournament."
NEW ZEALAND 39 [Lelia Masaga 2, Jamie MacKintosh, Stephen Brett, Alby Mathewson, Mikaele Tuu'u tries; Stephen Brett 3 cons, pen] defeated AUSTRALIA 36 [Geoff Abram, Josh Holmes, Anthony Faingaa, David Haydon, Tatafu Polota-Nau tries; Liam Bibo 4 cons]
Australia
1
Pekahou Cowan
2
Geoff Abram
3
John Ulugia
4
Tom Hockings
5
James Horwill
6
Michael Dan
7
David Haydon
8
Tatafu Polota-Nau (C)
9
Josh Holmes
10
Lloyd Johansson
11
Digby Ioane
12
Anthony Faingaa
13
Lloyd Jones
14
Liam Bibo
15
Caleb Brown
Reserves
16
Saia Faingaa (R)
17
Jack Kennedy (R)
18
Pat O'Connor (R)
19
Dominic Fuller
20
Christian Lealiifano
21
Brando Vaaulu (R)
22
Simon Greally (R)
New Zealand
1
Jamie MacKintosh (C)
2
Lance Po-Ching
3
Michael Reid
4
Ryan Wilson
5
Michael Patterson
6
Solomon King
7
Serge Lilo
8
Kieran Read
9
Alby Mathewson
10
William Ripia
11
James Somerset
12
Stephen Brett
13
Richard Kahui
14
Lelia Masaga
15
Jared Payne
Reserves
16
Hika Elliot (R)
17
Arden David-Perrot (R)
18
Mikaele Tuu'u (R)
19
Onosa'i Tololima-Auva'a (R)
20
Taniela Moa
21
George Pisi (R)
22
Lance MacDonald