The simmering tension between Australia and New Zealand boiled over after the controversial dismissal of Mitchell Marsh sealed a rare one-day series loss for the world champions and sowed the seeds for a fiery Test battle.

Australia's run of seven one-day series victories came to an end in Hamilton on Monday night as New Zealand celebrated the end of Brendon McCullum's one-day international career with a rousing 55-run win. It ensured the Chappell-Hadlee Trophy remained in the Black Caps' hands.

But McCullum's ODI swansong will be remembered for the bizarre wicket of Marsh, who was given out caught and bowled by Matt Henry despite claims umpire Ian Gould had not heard an appeal.

It sparked heated scenes between the two teams with claims Matthew Wade had called Grant Elliott a "f****** coward" for sledging an angry Marsh as he left. Marsh then appeared to yell "f****** bullshit" as he walked off the field despite a consolatory tap from McCullum.

Both captains were critical of match officials, unhappy with the process despite believing the right verdict had been reached.

Marsh was initially ruled not out but with Henry at the top of his mark to bowl the next ball Gould at the non-striker's end referred the decision to the video umpire after the replay appeared on the big screen.

Replays appeared to show Marsh hit the ball onto his shoe, and the deflection safely taken by Henry, who appealed half-heartedly.

Smith said he felt the Kiwis did not "genuinely" believe Marsh to be out until they had seen the replay but said the hosts were well within their rights to ask for clarification.

Smith refused to say if he would do the same if put in a similar position but said it was up to the umpires to make the call

"I don't think decisions should be made on the big screen, I don't think that's right for the game. I think better processes need to be put in place," Smith said.

"We've got a review system in place. You have 15 seconds to make your decision and I don't think that was necessary for that to come up in that point in time."

Smith, flanked by team manager Gavin Dovey and coach Michael DiVenuto, had a lengthy chat with match referee Chris Broad after the game.

The captain said Broad told him neither umpire had heard an appeal. But McCullum claimed later that the Kiwis had appealed, albeit a stifled one.

"When it did come up on the screen, which is not ideal, I yelled out "what the ... is going on?"" McCullum said.

"The only thing I said was the right decision has to be made."

McCullum, who won the ICC's Spirit of Cricket award last year for fair play, said it would have been "disrespectful" to withdraw the appeal.

Despite the heated exchanges, McCullum said there was no animosity from the Kiwis.

Marsh's departure, for 41 off 42 balls, came at a pivotal moment in the game as he was shaping to again be Australia's saviour.

Australia was on track to run down the Kiwis' target of 247 but the wickets of Smith and Glenn Maxwell to leg-spinner Ish Sodhi allowed the hosts back into the game.

Smith fell cheaply for the third time in as many games in a worrying build-up to the Tests.

The match was still Australia's to lose until George Bailey chopped the impressive Matt Henry onto his stumps, quickly followed by the wicket of Marsh.

Australia's quicks had earlier delivered arguably their best performance of the year to turn what appeared to be a sizeable New Zealand total to a modest 246.

The format changes next week but the efforts of Marsh and Josh Hazlewood will encourage the Australian brains trust.