Italy ran Australia close but in the end were beaten by the Wallabies who mounted a late second-half rally to secure a 25-18 win.
The Azzurri led 15-13 at half-time but were unable to defend that lead against the southern hemisphere giants.
The Wallabies ran in three tries - Mat Rogers, Guy Shepherdson and Stirling Mortlock were the scorers - while all of Italys 18 points came from penalties.
An ill-tempered start saw Brendon Cannon earn 10 minutes in the sin bin after squaring up to an opponent but Ramiro Pez missed the resulting penalty attempt.
Three minutes later the Argentinian-born kicker redeemed himself to give the home side the lead.
He slotted another after 12 minutes to take the score to 6-0 and his third a couple of minutes later took the score to 9-0.
Mortlock reduced arrears after 22 minutes with a penalty for John Connollys men but Pez slotted another three points minutes later to the delight of the Roman crowd at the Stadio Flaminio.
Australia finally started to get moving and Stephen Larkhams skill gave Rogers the chance to touch down with the first try of the match with the extras duly added.
Minutes later Mortlock added a penalty to put the tourists in front but on the stroke of the interval Pez slotted another kick from the touchline to make it 15-13 to Pierre Berbiziers men.
Australia came out after the break looking motivated and prop Shepherdson touched down to put them ahead with a try that was awarded by TV judges with Mortlock adding the extras for the Wallabies who now led 20-15.
Pez then missed a penalty but slotted another to make it 20-18.
Ten minutes from time came the killer blow as centre Wycliff Palu put in Mortlock whose try went unconverted.
Lote Tuqiri was then sin binned for time wasting but Italy could not make the extra man count and succumbed to a defeat.