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Australia continued their march towards a seventh Women's T20 World Cup title with a crushing 60-run win over New Zealand in their Group A match in Sharjah on Tuesday.

After posting a tournament high 148-8 in their 20 overs with Beth Mooney top-scoring with 40, Australia stifled the New Zealand batters who folded for just 88 in 19.2 overs. 

Quick bowler Megan Schutt was the pick of the Australian bowlers, her return of 3-3 in 3.2 overs netting her the Player of the Match award.

"We could have been smarter with the bat at the end, but we came out really well with the ball and I'm really happy with that," said Australia skipper Alyssa Healy.

"Megan Schutt has been wonderful but I thought the whole attack tonight was unbelievable."

Holders Australia, who have won six of the eight previous tournaments, top Group A while New Zealand slip to third, behind Pakistan but still above India on net run rate. 

After winning the toss and choosing to bat first, Healy gave her side the perfect start, smearing four fours in a rapid 20-ball 26 before skying a slower ball from Rosemary Mair into the covers. 

Ellyse Perry was dropped on four at long-on by Maddy Green and went on to add 45 with Mooney who finally fell to Amelia Kerr for 40, with Green this time clinging on at mid-off. 

As Australia wobbled in the middle order, Amelia Kerr used her googly to bowl Perry (30) and Grace Harris (0) with successive balls. 

Kerr then made a good catch to pick up Phoebe Litchfield (18) for the second time in the deep. 

Australia lost a flurry of wickets but still posted a daunting target for the White Ferns. 

The Kiwis, who beat India in their opening match, started slowly and once Kerr was dismissed for 29, the innings fell apart as nine wickets fell for 29 runs. 

Schutt took her tally to six wickets in the tournament while Annabel Sutherland also chipped in with 3-21.

"We needed to have a good start and we let the run rate creep up too much," said Kiwi captain Sophie Devine. "We've still got two games to go."

Australia play Pakistan in Dubai on Sunday while New Zealand face Sri Lanka in Sharjah on Saturday.