"I think Phipps had two really good games, I do, against New Zealand then against Wales," Cheika said.
"But Genia, I think he's been one of our best all season. I just feel that this is a good game for him to play, come back in and get straight into it and then Nick will finish the game.
"I think Nick's standard has definitely gone up from what I saw earlier in the year and now there's a real competition going on there."
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Cheika also praised number eight Lopeti Timani, who has started Australia's last three tests after replacing David Pocock against Argentina last month.
"He's continually making me pick him," Cheika added. "He's doing lots of good tight work and also when he needs to carry he's carrying well."
Pocock will start at blindside flanker for the second time in his test career, having played there against Wales, while the returning Dean Mumm has been named among the substitutes.
Also on the bench are Will Skelton and youngster Tom Robertson, who replaces James Slipper.
Team:
15-Israel Folau, 14-Dane Haylett-Petty, 13-Tevita Kuridrani, 12-Reece Hodge, 11-Henry Speight, 10-Bernard Foley, 9-Will Genia; 8-Lopeti Timani, 7-Michael Hooper, 6-David Pocock, 5-Adam Coleman, 4-Rory Arnold, 3-Sekope Kepu, 2-Stephen Moore (captain), 1-Scott Sio
Replacements: 16-Tolu Latu, 17-Tom Robertson, 18-Allan Alaalatoa, 19-Rob Simmons, 20-Will Skelton, 21-Dean Mumm, 22-Nick Phipps, 23-Quade Cooper
(Reporting by Simon Jennings in Bengaluru; Editing by Ken Ferris)
