But Australia eventually bounced back, Tom Rogic finding the net with a attractive strike from distance and Tomi Juric picking up the scraps of a free-kick.
Contrary to assertions from coach Ange Postecoglou before the game, the Australian side was marginally older than its opponent.
It was extended further three minutes into the second half.
The Group B clash in Sochi, Russia had a fast start as Lars Stindl gave a rampant German outfit the lead but a flurry of incidents at the end of the first half first saw Tommy Rogic equalize but then Julian Draxler made it 2-1 to Germany at the break.
Germany's Leon Goretzka, right, is congratulated by Joshua Kimmich after he scored his side's third goal during the Confederations Cup, Group B soccer match between Australia and Germany, at the Fisht Stadium in Sochi, Russia, .
"Chile is one of the world's best teams, not just in this tournament, they have a lot of experience and fantastic individuals".
"We know that they're a young side but we also know that they've got a lot of great players", Cahill said.
Much had been made before kick-off of Germany bringing a young squad and their starting line-up had just 138 worldwide appearances between them.
Celtic's Tom Rogic scored Australia's first to make it 1-1 by sliding a long-range attempt under Leno's hands before Tomi Juric made it 3-2 when finishing a rebound after Germany's goalkeeper had let a routine Rogic try slip from his grasp. "We'll be ready for it." says Postecoglu.More news: Pelosi defends leadership following special election loss
Low's side continued to dominate play after their early opener and Sandro Wagner almost doubled their lead in the 16th minute, sending a diving header inches wide at the far post following Goretzka's pinpoint cross, before the Hoffenheim man fired just wide again minutes later after beating the offside trap. "We didn't come here to lose games".
The final half-hour was entirely at odds with the opening period, with Australia carving out opportunities to level, though Germany can point to their own chances, hitting a post late on.
"It's just disappointing. I didn't come here to lose games".
"They've stated that they want to win a World Cup in 12 months time and this is part of their preparation for it". That being said, this seems like a game to much for Australia and I think that they will be comfortably beaten by the Germans.
"There's no question we're a team full of character and courage". We'll continue to do that.
"I'm disappointed with the result but not the performance of my players".
If Australia are trying to make a statement, they need to first learn exactly where they sit in world football.
"You can't prepare them for what they they're going to face out there".
There's even a school of thought saying "Die Mannschaft" is better off including younger, hungrier players.