The Wallabies have only four Tests and less than four months to turn themselves into World Cup contenders but coach Eddie Jones is adamant they can do it.

The Australians' painful 25-14 loss to England at Melbourne's Telstra Dome showed just how much they must improve before the World Cup defence starts on October 10.

England silenced southern hemisphere doubters and justified its world No.1 ranking with its first Test win in Australia, scoring three tries to one in a convincing victory.

The win saw bookies move England into second favourite to win the World Cup behind New Zealand, which it also beat last week.

The good news for Wallaby supporters is that the side should improve significantly as key players like Owen Finegan, George Smith, Stephen Larkham and Stirling Mortlock return from injury and they get deeper into the 2003 campaign.

England, meanwhile, must be close to its peak with an ageing squad that's been together about five years and coming off a long campaign.

By contrast, Jones said Australia was only 18 months into its Cup build up - starting in 2002, six months after he took over the coaching job from Rod Macqueen.

"Woodward's been running his speed program, lineout throwing and kicking programs for five years so it's no fluke that they throw or kick accurately," Jones said.

"We've definitely got the talent here ... so if we're able to get other areas of our game right which we will through hard work, through technical correction and through application then we'll be in a position where we can make up ground fairly rapidly."

Of greatest concern is Australia's forward strength.

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