Australia had to settle for a fourth placed finish in the World Series leg in Dubai.
After a silver medal to start the season, the women's team was knocked out of the running after a fast finish from Canada in the semi-finals.
The Canadians, who were then beaten by New Zealand in the final, took a 26-12 victory.
The Australian side then fell 24-7 against the US in the third place play-off.
They sit in third place on the overall standings after the first two tournaments.
Australia had come through the pool stage undefeated, only conceding two tries while scoring 38 points in each of their wins over Fiji, Ireland and Spain.
They then scored a 21-0 win over Spain in the quarter-final
Australian coach John Manenti was disappointed with how they finished the tournament.
"We're disappointed not to be on the podium but there are plenty for us to take on board for next week's tournament in Cape Town which we will work on," Manenti said.
"Next week will be history making with the first ever round of the Women's Series in Cape Town and this squad is excited about bouncing back and putting their best foot forward next week."
Batlow's Sharni Williams is Australia's highest pointscorer so far this season with 73.