Staniforth provided the finishing touch to a superb attacking move
Australia (6) 20
Tries: Ashley-Cooper, Staniforth
Cons: Giteau 2
Pens: Mortlock 2
New Zealand (15) 15
Australia replacement Scott Staniforth crossed with just eight minutes left to give the Wallabies their first win over the All Blacks since 2004.
Tries: Woodcock, Gear
New Zealand started well and led 15-6 at half-time with tries from prop Tony Woodcock and wing Rico Gear.
But Australia battled back and the game turned when All Blacks prop Carl Hayman was sin-binned on 62 minutes.
Adam Ashley-Cooper and Staniforth crossed while he was off the field and Australia hung on for a memorable win.
The victory throws this year's Tri-Nations wide open while giving the Wallabies a massive psychological boost ahead of the World Cup.
It also gives them a real chance of claiming their first Bledisloe Cup - the regular series between the two countries - since 2002.
The tone for the opening half was set in the first move of the match when Australia full-back Julian Huxley thumped the kick-off straight out, allowing New Zealand to take charge of the early stages.
The Wallabies did not see the ball for the first five minutes, and New Zealand's pressure told when the video ref awarded a try to Woodcock who barged his way over from close range.
Australia regained their composure, and skipper Stirling Mortlock was unlucky not to score when he almost latched onto a clever grubber kick from Stephen Larkham into the in-goal area.
They soon got on the board through a Mortlock penalty, but All Blacks fly-half Dan Carter replied on 17 minutes when flanker George Smith lost his discipline at a ruck.
The scrummaging area was a mess all game, and when the New Zealand front row were penalised as another scrum disintegrated, Mortlock reduced the deficit to four points with his second penalty.
New Zealand always looked dangerous, and Gear went over in the corner for their second try after some nice work from Luke McAlister.
Australia had plenty of ball but could not find a way through the ferocious New Zealand defence, and Mortlock missed a superb opportunity for a morale-boosting score just before half-time when he fired a penalty wide.
Ashley-Cooper powers through the All Blacks defence for a fine try
The Wallabies came out for the second half showing a bit more purpose, and the impressive Mortlock made Australia's first line break just after the restart.
New Zealand, visibly tiring after their exertions in South Africa last week, started to spill some ball in attack and their frustration began to show.
South African referee Marius Jonker finally lost patience after a string of indiscretions at the breakdown and Hayman was sin-binned with just 18 minutes to go.
Australia immediately took advantage, with Ashley-Cooper scoring a superb try a minute later when he skipped through the tackles of Gear, Richie McCaw and Chris Jack to power over in the corner. Matt Giteau converted.
New Zealand's woes increased when Carter missed a shot at goal on 71 minutes - and with eight minutes left Australia took the lead for the first time.
Mortlock carved his way through the New Zealand defence after McAlister and McCaw missed tackles and fed inside to Staniforth, who dived over unchallenged underneath the posts.
New Zealand piled the pressure on in the closing stages but Australia were not going to be denied as their impressive defence held firm.
Australia: Huxley; Ashley-Cooper, Mortlock (capt), Giteau, Tuqiri; Larkham, Gregan; Dunning, Moore, Shepherdson, Sharpe, Vickerman, Elsom, Smith, Palu.
Replacements: Freier, Baxter, Chisholm, Hoiles, Waugh, Staniforth, Gerrard.
New Zealand: Muliaina; Gear, McAlister, Mauger, Rokocoko; Carter, Kelleher; Woodcock, Oliver, Hayman, Jack, Flavell, Collins, McCaw (capt), So'oialo.
Replacements: Mealamu, Tialata, Filipo, Masoe, Weepu, Sivivatu, Evans.