But the veteran coach departs the job with a losing record and Australia looking a long way off being a contender for the World Cup they host next year.
The victory over Italy was the Wallabies’ largest since the 65-3 win over Uruguay at the 2015 World Cup.
However, it was also their first victory in three attempts in the new competition and followed six successive defeats.
“If you look back two and a half years, I think we’ve definitely made progress,” Schmidt said in a television round table discussion.
“The players are more connected, the leaders are more vocal, and they are the critical mass internally.
“Our set-piece is getting better. Our fundamentals around the carry-clean, our connection, and our defence—they were all in evidence tonight.”
Schmidt, 60, is stepping down to spend more time with his family, having previously detailed his desire to help with the care for his son, Luke, who has severe epilepsy.
He leaves the Wallabies job with a record of 12 wins and 19 losses and hands over to Les Kiss, who will have 15 months to prepare the Wallabies for the World Cup, which kicks off in October next year.
Kiss starts with a two-test series against Japan and has 11 tests this year in a busy programme.
The incoming coach has been involved in the Wallabies camp for this month’s Nations Championship home matches, where they lost narrowly to Ireland in Sydney and France in Brisbane.
Former captain Phil Waugh, now the chief executive at Rugby Australia, believes Schmidt has ensured progress.
“I think he’s handing over the squad to Les in a really strong position, and ultimately, we need to continue that trajectory and that progress to close the gap on the win/losses,” Waugh said.
Schmidt thanked Australian fans for sticking with the team despite the poor results.
“We’ve had massive support again tonight, and it makes a huge difference to the players," he said.
“They know they’ve got to keep earning it, but I’m loving the support we’ve had. So thanks very much.”
Nations Championship 2026
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