"They've got the basis of a very, very good team," Farr-Jones said.
"And I would imagine if we're all patient and give the new coach some time, and the experienced and the new players some time to mature, I think that there's a mix of players that could certainly go on to be a great Wallaby team in a year or two - and lets hope in three years' time (at the 2011 World Cup)."
Despite his optimism following Australia's unexpected victory over South Africa at the weekend, Farr-Jones says the Wallabies still face an uphill battle to win this year's Tri-Nations tournament.
Asked to rate the Wallabies' prospects against New Zealand in Sydney on Saturday night, the World Cup-winning captain said a second upset win in as many weeks is not impossible.
"It'll be tough but I'd have to say after the weekend in Perth arguably we've got the best defensive team in the world and we all know that generally speaking 50% of the game is defending," he said.
"So the All Blacks are going to have to be very clever to crack our defence - if you've got the best defensive team in the world then you're right in the game.
"The All Blacks will have regrouped after (their 30-28 loss to South Africa in) Dunedin and will be desperate to win the Tri-Nations, and to win the Tri-Nations this is a crucial game for them.
"But we're right in it."
Former scrum-half Farr-Jones believes the future is also bright for current number nine Luke Burgess and revealed his plans to put the 24-year-old through his paces in the lead-up to the Bledisloe Cup encounter.
"We might get together tomorrow (Tuesday) afternoon and I'd like to sit down and have a good look at his technique," he said.
"From a distance when you're sitting in a stand you don't really get a chance to do that.
"I know that they break things down on the computer now and I'd like to have a really good look and maybe go out and look at the pass and look at the technique.
"But I think he's doing all the things right, he's getting in there, he's got his nose on the ball which is desperately important, he's prepared to have a go and he's making oppositions think."