McGrath took 3-22 in bowling 10 straight overs as the Aussies clinched a place in the Champions Trophy final.

"I am improving in every game," said McGrath, who missed two tours earlier this year to be with his ill wife.

"That is what I wanted to achieve on this tour especially and at the moment I am not too far away from 100%."

That is bad news for either South Africa or West Indies, who face Australia in Mumbai on Sunday, and England as they prepare for the Ashes series, starting at the end of November.

Captain Ricky Ponting watched McGrath run through the Kiwi top order with a display of accuracy, taking advantage of movement off the seam.

"On that sort of wicket we knew it would do something with the new ball and thought it might do more at night time," said Ponting.

"That is exactly what happened. Glenn put the ball in the right area and bowled beautifully."

World champions Australia had never reached the Champions Trophy final before in four previous attempts.

"We have been very excited about our chances this time around," Ponting added.

"To be in a final is one step further than we have ever been so we will give ourselves a good chance when we get to Mumbai."