The new Australian of the Year and recently retired Test captain teamed up with brother Mark for their final game in Western Australia but neither could make the impact their home State needed, with Western Australia running out winners by 126 runs.
At stumps on the fourth day, New South Wales were all out for 260 after being set 387 runs to win when Western Australia made 279 in its second innings.
Western Australia had declared its first innings closed at 474 for six on the first day, and Steve Waugh set the scene for an outright result when he declared New South Wales' first innings closed at 367 for seven in response.
It was Western Australia's first outright win of the season and it marked the end of their veteran pace bowler Jo Angel's career as he slides into retirement.
He finished with figures of 3-63 as New South Wales' second innings collapsed after tea. They lost their last five wickets for 52.
Steve Waugh made 21 and Mark 36, but it was too little too late.
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