Beal, who turned 26 on Tuesday, will now almost certainly play a part in the World Cup in England this year as well as help the New South Wales Waratahs defend the Super Rugby title.
Both teams will be guided by Michael Cheika, who replaced McKenzie when the former test prop quit in the wake of the scandal over obscene text messages sent to a female member of the Wallabies staff.
Beale, who has been involved in a string of disciplinary issues over the last few years, faced having his contract torn up over the incident but an independent tribunal instead landed him with a A$45,000 (24,181 pound) fine.
He rejoined the Wallabies squad on their November tour of Europe after regaining his fitness and won his 48th and 49th caps off the bench against England and Ireland.
"I'm really looking forward to the year ahead and am grateful to the ARU and Waratahs for the opportunity to continue my career here in Australia," Beale said. "With the World Cup coming up, I'm looking forward to getting back out there and playing some good Rugby for the Waratahs and hopefully getting selected for the Wallabies."
Cheika, who helped Beale resurrect his career at the Waratahs last year after alcohol problems brought a premature end to his time at the Melbourne Rebels, welcomed his retention."Kurtley is a fantastic player who will add to our great talent pool of inside backs," said Cheika. "I'm looking forward to getting the best out of him again over the next 12 months."
Although Beale started his career as a flyhalf and has played much of his international rugby at fullback, Cheika has used him at inside centre at the Waratahs.
Beale is a highly skilled player whose turn of pace and ability to squeeze through the narrowest of gaps can bamboozle even the best defences.
His value as an impact player coming off the bench is heightened by his proven ability to land long penalties in clutch situations towards the end of a games.
(Reporting by Nick Mulvenney, editing by Peter Rutherford)
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