Dunning, who missed last week's 30-14 defeat of Ireland at Lansdowne Road with a neck injury, comes back at the expense of Greg Holmes.
The match will mark a record for George Gregan, who will captain the Wallabies for the 50th time.
There is one change on the replacements bench with scrum-half Chris Whitaker taking over from Matt Henjak.
Australia team to play Wales at the Millennium Stadium in Cardiff on Saturday:
C Latham; M Gerrard, L Tuqiri, M Turinui, D Mitchell, M Rogers, G Gregan (capt); M Dunning, B Cannon, D Fitter, H McMeniman, N Sharpe, J Roe, P Waugh, G Smith.
Replacements: T Polota-Nau, A Baxter, M Chisholm, S Fava, C Whitaker, L Johansson, W Sailor.