Four months out from their home World Cup, the Black Ferns needed to rebuild confidence but it did not come easy against the Wallaroos, who in their 20th test against New Zealand, chased their maiden victory.
Trailing 10-5 after a shaky first half, the Black Ferns showed composure to change tactics and seize control of the contest to score 23 unanswered points in the second spell.
While there remains vast room for improvement Smith will be pleased his youthful Black Ferns team, containing seven debutants, proved they possess the character to overcome adversity.
Defensively shutting out the Wallaroos from scoring any second half points is another significant building block to carry forward.
The Black Ferns bench added serious impact as they reeled Australia in with replacement prop Tanya Kalounivale denied a try on debut but forming part of a dominant scrummaging effort.
Impressive blindside flanker Alana Bremner was busy at the breakdown, alongside openside Kendra Reynolds, while left wing Ayesha Leti-I'iga bagged two tries and was lethal every time she touched the ball.
Second half tries from Bremner and player of the match No 8 Kaipo Olsen-Baker, who beat two defenders with a storming blindside surge to the line, pushed the Black Ferns ahead for the first time in the match.
Veteran halfback Kendra Cocksedge, playing her record-setting 58th test, missed four sideline conversions but her penalty strike at the 60-minute mark gave the Black Ferns an 18-10 lead.
Wallaroos fullback Lori Cramer missed a penalty 30 metres out to close within a converted try in the final 10 minutes and that was as close as Australia got.
The Wallaroos made intentions clear from the outset by staging a V-shaped formation and approaching the haka. Once the match was underway it didn't take long for contrasting tactics to emerge.
Despite the extremely difficult conditions the Black Ferns attempted to keep the ball in hand, to play at pace and tempo, and chase width. It was high risk, adventurous, and often left them under pressure through handling errors in their own half.
Cocksedge kicked the ball for the first time in the 36th minute – an example of her side's attempts to run almost everything.
The Wallaroos adopted the more conventional approach of playing for territory, and it largely worked with loosehead prop Liz Patu crashing over for the opening try.
Frequent errors from the Black Ferns, and discipline issues at the breakdown where they were beaten to the punch and lacked support in the first half, continued to hand the Wallaroos the upper hand, allowing the locals to extend their lead to 10-0.
Ruby Tui, the Black Ferns sevens star, impressed with limited chances in her XVs test debut on the right edge with a busy display but it was left wing Leti-I'iga who finished a quick tap movement to bring the locals within reach at the break.
A clear tactical switch was evident from the Black Ferns in the second half – now far more willing to kick and play at the right end of the field. This allowed the Black Ferns to build and apply pressure. They still embraced quick hands, and had more success doing so, with Leti-I'iga highly involved off her wing.
The Wallaroos fought desperately until the end but the Black Ferns finished with a flourish as Tui narrowly missed claiming a maiden test try from a cross-field kick before Leti-I'iga completed the comeback.
In the earlier Pacific Four Series match Canada easily accounted for USA 36-5. The Black Ferns meet Canada in Waitakere on Sunday, before facing the USA in Whangarei the following week.
Black Ferns: Ayesha Leti-I'iga 2, Alana Bremner, Kaipo Olsen-Baker tries, Kendra Cocksedge pen
Wallaroos: Liz Patu try, Lori Cramer con, pen
HT: 5-10