Phil Hassan gave the Lions an early lead but Australia replied with a Ben Walker try. Lee Parsley then scored a memorable try for the Lions after scattering the home forwards. Jonathan Roper landed his second conversion.
The Australians took full advantage after Waring and Murdock went off, scoring four tries, two from Colin Murphy and one each for Anthony Mundine and Wayne Evans.
Terry Fitzsimmons, Britain's tour manager, said: 'Great Britain can be proud of the Young Lions, who totally demoralised the Australians with an inspired first-half performance. The loss of both half-backs just after halftime was a crushing blow, but we have shown our true potential.'
GREAT BRITAIN: Simpson (Bradford); Roper (Whitehaven), Gouldbourne (Hull), Seeds (Whitehaven), Hassan (Wigan); Waring (Manchester), Murdock (Whitehaven); Taylor (St Helens), Clarke (Leeds), Parsley (Whitehaven), Daniel (Leigh), Hepworth (Bradford, capt), Hill (Whitehaven). Substitutes: Carter (Hull) for Murdock 45, Barker (Wigan) for Clarke 57, Cain (Leigh) for Waring, 49, Hill (Oldham) for Daniel, 60.Reuse content