But the former Leicester boss insists Australia must employ a fresh approach and bring in new blood for the upcoming Rugby Championship ties with South Africa and Argentina on September 8 and 15.
"We just have to start all over again and forget everything we've done for the past couple of years," Dwyer told the Australian newspaper.
"We might lose a couple of Tests while we straighten ourselves out but that's just a price we'll have to pay.
"We have to do something. We cannot not do anything. The shape of our game is so bad we have to start all over again.
"We can either keep the (playing) personnel and change the coach or keep the coach and change the players. Certainly some of the personnel need changing."
The Wallabies were widely criticized by their own press for the manner of their attacking game in the 27-19 and 22-0 defeats to the All Blacks in Sydney and Auckland, with Dwyer himself highlighting this as an area of weakness.
It's in stark contrast to this time last year when the Lions' next opponents were deemed to have the best backline in the business as they secured a first Tri Nations triumph in a decade.
"Our attack is non-existent. The trouble is we're not winning the ball," added Dwyer.
"A player in possession has three options - run, pass or kick - but so badly are the Wallabies executing their skills that it's understandable why our players kick so much."