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Spain’s record scorer, Villa put Spain 1-0 ahead with his 59th goal in 97 internationals. He flicked home in the 36th minute with a clever backheel after a fine pass from Iniesta had sent defender Juanfran clear.
Fellow striker Fernando Torres finished neatly in the 69th minute when he found space in the penalty box. Substitute Juan Mata rolled a third goal between the legs of goalkeeper Mat Ryan in the 82nd minute as Australia ran out of steam.
“In my opinion we played with dignity, we fought, we worked well apart from the first 15 minutes of the first half,” Spanish coach Vicente Del Bosque said.
“The rest of the game we controlled well.”
The goals silenced Brazilians fans in the crowd in Curitiba who had jeered Spain and wanted to see Australia cause them more pain.
The damage had been done for the Spain when they lost 5-1 to the Dutch and 2-0 to Chile in their first two games, ending the reign of a team who have dominated European and world soccer since 2008.
“This time it was our turn to lose and I think we go out with our heads held high,” Del Bosque added, saying he will make a decision on his future once he gets home.