Ange Postecoglou's side landed in Group B alongside the world champions, South American champions Chile and whoever wins the 2017 African Cup of Nations, which kicks off in January.
The Socceroos are familiar with Chile, having faced them in the group stage of the 2014 FIFA World Cup, in Brazil.
On that occasion Chile were too much for the Socceroos, recording a 3-1 victory as Alexis Sanchez and then Eduardo Vargas put them up 2-0 inside the first 14 minutes before Tim Cahill cut the lead with a trademark header.
Chile then scored the sealing goal through Jean Beausejour in injury time.
Despite the tough draw Socceroos coach Postecoglou welcomed the challenge that the Socceroos now face on a global stage.
"We've earned the right to play in the Confederations Cup by winning the Asian Cup and as champions of Asia we now look forward to testing ourselves against some of the best nations in world football," Postecoglou said.
"Germany and Chile will be tough opponents and we know the winner of the African Cup of Nations will be a quality side but we will go into the games well prepared and ready to show everyone what we are capable of."
While the Socceroos have once again landed in a tough group New Zealand's All Whites fared slightly better.
The All Whites will play in the tournament opener against hosts Russia in St. Petersburg and are also set to face Cristiano Ronaldo's Portugal and CONCACAF Gold Cup winners Mexico.
THE SOCCEROOS HISTORY IN THE CONFEDERATIONS CUP
* 1997 Runners-up - defeated 6-0 by Brazil in the final
* 2001 Third place - defeated 1-0 by Japan in the semi-final, then beat Brazil 1-0 in the third-place playoff
* 2005 Group stage exit - defeated in all three group stage games, losing 4-3 to Germany, 4-2 to Argentina and 2-0 to Tunisia
