England's Lily Owsley looked to have scored the winner in wet conditions, slotting home in open play in the second half, only for Australia to grasp one last vital chance at the death.
A penalty corner in the final minute saw the English defence rush out too early, and with a numerical advantage on the retake, Australia pounced to score.
Jodie Kenny controlled the ball from a rebound in the box before flicking home with just 14 seconds left on the clock.
Both teams converted their first chances of the resulting shootout.
Australia's Kelly White then missed, before goalkeeper Rachael Lynch came up with two big saves.
Kenny nearly rounded the English keeper only to be tripped up, but she contrived to spoon her penalty shot wide.
But Lynch again rescued Australia with superb shepherding to maintain the 2-1 lead, before Blyth calmly scored to secure a 3-1 shoot-out win.