Both men spent seven months experimenting with 1/9th scale models in the University of Delft test tank in the Netherlands.

The older boat remained a trial horse for Australia during the 1977 America's Cup series.

Ben Lexcen, however, was convinced that Australia's hull – with a few modifications – was a good design and that its performance would improve with a new rig and sails.

The "bendy" rig added to Australia's speed and it became a very competitive boat defeating the US defender Freedom (US-30) in the second race of the series.

However, the late adoption of the "bendy" mast meant that the crew of Australia were experimenting with the newly cut sails and lacked the necessary confidence in them to win.

In the final two races, the wind blew hard enough to cancel out whatever advantage it gave Australia and Freedom won the series convincingly 4–1.

[8] Following the 1980 challenge, Australia was sold to the British "Victory" syndicate headed by Peter de Savary.