Australia faced their first loss in this year’s World Cup as India outplayed the defending champions at The Oval.
Aaron Finch's side were smashed all over the park by India's batsman and then struggled to maintain a good scoring run rate in a high run-chase which lead some critics to suggest they aren't good enough to retain the World Cup.
"Australia won't be too disappointed as they have time to dissect this loss, fine tune their process, tinker with batting orders and bowling options and manoeuvre things around before the semi-finals come around," Waugh, a two-time World Cup winner himself, said.
"This World Cup is wide open right now with up to six teams believing they have a chance to lift the Cup at Lord's."
Barring Maxwell, the rest of the Australia line-up batted couldn’t catch up with the run-rate which then made it impossible for them to chase the total down.
But Waugh believes only minor tinkering is needed in their side to allow them to beat India and England.
"I don't think we need to change anything and I don't think we were that far off, we just need some tinkering here and here, a bit of luck going our way," Maxwell said.
"On another day a couple would have cleared the fence or missed the fielders and we'd have been away.
"We were trying to keep up with the run rate but they bowled really well and fielded out of their skins. Their tactics were really good and the built pressure on us too quickly."