Australia finished strongly in 3:54.029 to take on the Bradley Wiggins-led Great Britain (3:54.267) for the gold medal on the evening programme, with Denmark up against Italy for the bronze.
But there was better news for the New Zealand women's team pursuit, who rode a national record to qualify third fastest on day two of the UCI Track Cycling World Championships in London.
The quartet of Lauren Ellis, Rushlee Buchanan, Jaime Nielsen and Racquel Sheath rode 4:20.664, which was more than two seconds faster than the New Zealand record they set at the world championships in Paris last year.
USA topped the qualifiers on 4:16.180 with half a second covering the next four teams. The Kiwis, who were fifth fastest after the first 1000m, produced three consistent kilometre splits of 1:03 to climb to third.
They take on Canada on Saturday with the winner to progress to the gold medal ride, while USA meet Australia.
Southland's Matt Archibald finished fifth in the men's 1000m time trial on a sluggish London velodrome, clocking 1:01.718 to just miss out on a second successive podium, in the event won by Germany's Joachim Eilers after taking silver in the last two world championships.
Natasha Hansen missed out on qualifying for the semi-finals in the women's keirin, finishing third in a cut-throat repechage.