Coach Joe Schmidt said on Saturday Australia are still some distance from playing their best rugby but believes they can "potentially be competitive" against the British and Irish Lions next year.
The Wallabies are long shots to upset the Lions in next July's three-test home series, having slumped to 10th in the world rankings on the back of five defeats in six Rugby Championship matches.
Schmidt's team placed last in the four-nation tournament, rounded out by a 33-13 defeat to New Zealand in Wellington on Saturday in which they were thoroughly outplayed in the second half.
Australia next face a season-ending northern hemisphere tour in November with tests against England, Wales, Scotland and Ireland – the nations that contribute players to the Lions.
"We'll get a good look at their personnel," said Schmidt, who coached Ireland for seven years up to 2019.
"I know them well and I know how good they are.
"It's a bit like when we come up against the All Blacks, you know it's going to be a really tough tour.
"But if we can keep building through that tour, then I think we put ourselves in position of potentially being competitive next July (against the Lions)."
Schmidt has launched a rebuilding process since succeeding Eddie Jones, who oversaw the Wallabies' worst World Cup campaign last year, when they failed to reach the knockout stage for the first time.
After nine tests in charge, four wins and five defeats, Schmidt said he can't yet decide on his best 15.
"As a group of coaches, we're pretty hard on ourselves. Are we managing to get the most out of the group? Have we got the right group?" he said.
"Going north, for us, is still about building depth."