Italy have recorded their first-ever victory against Australia, beating the Wallabies 28-27 in a thrilling contest at the Stadio Artemio Franchi in Florence this afternoon.

Australia had won all 18 of the previous meetings between the two sides, but missed a last-gasp conversion to steal the win as Italy held on for a famous triumph by the skin of their teeth.

It was the second successive weekend that the Wallabies have suffered late heartbreak and lost by one point, having been beaten 30-29 by France in their Autumn Internationals opener last week.

However, today's result will raise more alarm bells than the loss to France, with Dave Rennie's side having now lost five of their last six games including this historic defeat.

Rennie raised eyebrows by making 11 changes to his starting lineup against an Italy side going into the game off the back of a big win over Samoa last weekend, and those decisions looked to have backfired in the first half.

Tries from Pierre Bruno and Ange Capuozzo helped Italy into a 17-8 lead at half time, with Tom Wright providing the only try in response for the Wallabies.

Australia showed signs of a fightback in the second half as Fraser McReight and Tom Robertson went over either side of Capuozzo's second of the day.

Cadeyrn Neville then crossed as the clock turned red to reduce the deficit to one point with the kick to come, but debutant Ben Donaldson could not convert as Australia fell just short for a second successive week.

Italy could now make it three wins on the bounce against world champions South Africa next weekend, while Australia will be hoping to bounce back against the world's number-one ranked side Ireland.