"I think we need to play a normally formatted Super Rugby against the Australians. We've lost to the Rebels the last two times we've played them; I've only beaten the Reds once over in Suncorp. Playing the [Waratahs] over in Sydney is hard; all these games are tough in their own way and it's probably the same for the Aussies when they come here, as it should be.
"We need them. We need that bond of the Bledisloe; that bond of New Zealand and Australian rugby to be strong for our rugby to be strong, and the Southern Hemisphere brand of rugby."
The Australian teams came close to stemming the flow of Kiwi dominance in the competition early on, with the Brumbies and Force missing shots at goal to draw and beat the Crusaders and Chiefs.
However, in the second round, there was little trouble for the New Zealand sides who took all five matches by an average margin of 23 points.
But while the Australians are yet to get on the board in the campaign, Smith has added his voice to a chorus of New Zealanders warning that, at some point in the campaign, the Australians will tip someone up.
"The Aussie teams are going to get a win in this competition and we've said it as a leadership group we don't want it to be us," Smith said.
"If we rock up to a game thinking it's just going to happen - someone's going to trip and get embarrassed if they don't show up."
The Highlanders match against the Rebels was initially scheduled to be played in Queenstown on Sunday, however a Covid-19 outbreak in Melbourne meant the match was moved to Leichhardt Oval in Sydney as the Rebels could not leave Australia.