In 2001 Jones coached Australia A to a win over the touring British and Irish Lions. This success led to his appointment as head coach of the Australia national rugby union team, the Wallabies, after Rod Macqueen retired. Under Jones, Australia won the 2001 Tri Nations, and then entered their home World Cup in 2003 as third favourites behind New Zealand and England. They managed to upset the All Blacks in the semi-final before losing to England in the final in extra time through a last-minute drop goal.