Smith's reign was expected to end if England had lost, in the wake of last year's embarrassing World Cup showing.
But he will rule for at least another week after his battlers snuffed the life out of the world champions.
It sets up an Elland road showdown with Australia next Saturday in the Four Nations' final - and on this showing, don't bet against Smith's young side.
He gambled with three team changes for this sudden-death game and even tinkered with his line-up right up to kick-off.
But his potentially risky policy paid off in terrific fashion as England clocked up an 18-6 half- time lead.
Winger Peter Fox had been gutted when he was overlooked in the first two games, with Smith giving Tom Briscoe a late call-up to his starting XIII.
But the Hull KR flier grabbed his chance in devastating style, ripping in for two tries in the final minutes of the first half.
Playing a big hand in his second try were the other two men who had been thrown a lifeline by Smith - Kyle Eastmond and Chris Bridge.

Eastmond's two earlier promising substitute displays were enough to oust disappointing half-back Danny McGuire after his flop against Australia last week.
The 20-year-old St Helens star celebrated by linking with tournament newcomer Bridge to send in Fox past a despairing Bryson Goodwin.
It was the second embarrassment in five minutes for the Kiwi winger, after he totally misjudged a Sam Tomkins kick, letting in Fox for his opener. Smith's gamble with his three call-ups was coming good, as was his late decision to switch Kevin Sinfield to hooker and bring back row star of the future Sam Burgess in at loose forward.
The pair were both involved in England's first try after 10 minutes, with Aussie-bound Burgess doing superbly well to twist out of two tackles and send in Eastmond.
Sinfield converted all three tries and almost grabbed a score of his own, after his high kick fooled flapping full-back Lance Hohaia. The Kiwi made amends with his involvement in his side's only first half try, after 15 minutes.
England's suspect right wing was again exposed, which could be a big worry for Smith next week.
The new-look right side line-up of Bridge, Fox and Eastmond were torn apart by the swift passing of Hohaia and Kieran Foran to send in Goodwin.
The same wing was again targeted by the world champions within moments of the second half starting.
Again it was found wanting when Isaac Luke's work at dummy-half work caught England cold.
When substitute Ben Matulino raced over for a try converted by Goodwin, it was game on.
Both sides were well and truly up for this winner-takes-all game and both sets of players did well to cope with some bizarre decisions by French referee Thierry Alibert.
The Super League official gave a series of strange decisions.
The worst by far was his ruling that Fox had knocked on as he tried to collect a Sinfield kick, despite Fox being taken out in the air by Goodwin.
His insistence on letting sides wrestle in the tackle finally spilled over with a handbags spat between Bridge and Kiwi prop Frank-Paul Nuuausala.
The Kiwis slowly but surely started to turn the screw but this young England side showed real guts to hold them out.
Sinfield's 72nd-minute penalty nudged them eight points clear, meaning the Kiwis had to score twice - which to England's relief they failed to do.
CENTRE Michael Jennings marked his international debut with a hat-trick but Australia coach Tim Sheens admitted his side never got out of second gear.
The Aussies ran in eight tries as they booked their place in Saturday's Four Nations' Final.
Sheen said: "We expected a good hard game from them. It was one of those games where we never got out of second gear. There was too much dropped ball and too many mistakes. But we got away with no injuries."
Josh Morris, also making his debut, scored twice, while twin brother Brett also grabbed a brace.
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