Rugby Australia chief executive Phil Waugh is confident the Wallabies will be ready to compete with the British and Irish Lions next year, despite suffering the heaviest defeat in their Test history last time out.

Australia were crushed 67-27 by Argentina in the Rugby Championship last time out, their third defeat in four games in this year's tournament.

They were also dumped out of last year's Rugby World Cup in the pool stage following losses to Fiji and Wales, and they are down to ninth in the World Rugby Rankings.

The British and Irish Lions will face Australia in three Tests when they tour down under between June and August next year, with many fearing Joe Schmidt's team will be blown away.

Waugh, however, says there is plenty of time for the Wallabies to get things right before then, telling the Sydney Morning Herald: "You can see the progress is there.

"It is not nearly where we need it to be, but if we keep progressing at the speed with which we have moved things in the last six months, then there is plenty of time.

"It is a team that is, and I hate using the word 're-building', but it is a team that is re-setting, and it takes experience in big moments to get better.

"Obviously, the enormity of the scoreline in that second half was disappointing.

"But there is context that is important... we are not the most experienced team in world rugby, and we are building that experience."

Australia conclude their Rugby Championship campaign with two fixtures against New Zealand before the end of September, then face England, Wales, Scotland and Ireland in their Autumn International Tests in November.