Australian captain Ricky Ponting won the toss and chose to bat first against South Africa in the Twenty20 cricket match at the MCG on Sunday night.
Australia will start their innings in fine and mild conditions.
A crowd of up to 70,000 is expected to attend the match.
Australia gave NSW batsman David Warner an international debut, while wicketkeeper Luke Ronchi will play his first international on home soil as Brad Haddin rests.
This is also fast bowler Shaun Tait's first match for his country since he took time out of the game a year ago.
Johan Botha will lead South Africa now that Graeme Smith has returned home and Herschelle Gibbs returns to the top of the order.
Paceman Lonwabo Tsotsobe and batsman Vaughn van Jaarsveld will make their international debuts.
Australia: Ricky Ponting (capt), Nathan Bracken, James Hopes, Ben Hilfenhaus, David Hussey, Mike Hussey, Shaun Marsh, Luke Ronchi, Shaun Tait, David Warner, Cameron White, Ryan Harris (12th man).
South Africa: Johan Botha (capt), Herschelle Gibbs, Jacques Kallis, AB de Villiers, Jean-Paul Duminy, Vaughn van Jaarsveld, Mark Boucher, Albie Morkel, Dale Steyn, Makhaya Ntini, Lonwabo Tsotsobe, Wayne Parnell (12th man).