O'Connor returns for Australia in Highveld showdown with Springboks
O'Connor, 35, has not featured for the Wallabies since a 48-17 loss to Argentina in 2022, but injuries to Noah Lolesio and Tom Lynagh have opened the door for his return.
Ben Donaldson, 26, who came off the bench in Australia's last three tests, is not in the match-day 23 having played 45 minutes in the 22-12 win over the British & Irish Lions last time out.
Schmidt has opted for a 6-2 split between forwards and backs and Donaldson misses out, with loose-forward Nick Champion de Crespigny taking his place on the bench at Ellis Park.
Billy Pollard starts at hooker with experienced props James Slipper and Taniela Tupou either side of him.
Nick Frost and giant Will Skelton make up the second row, and Tom Hooper retains the number six jersey with Rob Valetini still injured.
Scrumhalf Nic White, who postponed his international retirement to go on this two-match tour to South Africa, will be alongside O'Connor.
Len Ikitau and Joseph Suaalii are the centre pairing, while the back three is made up of wings Dylan Pietsch and Max Jorgensen, and fullback Tom Wright.
"The group has had a good week of preparation, adjusting pretty well to the time zone and the altitude well here in Johannesburg," Schmidt said.
"There's not many bigger Tests than playing South Africa on their home turf and we know we're going to need to be at our best on Saturday night."
Australia are seeking their first win at Ellis Park since 1963, when they beat South Africa 11-9.
Australia team:
15–Tom Wright, 14–Max Jorgensen, 13–Joseph Suaalii, 12–Len Ikitau, 11–Dylan Pietsch, 10–James O'Connor, 9–Nic White, 8–Harry Wilson (captain), 7–Fraser McReight, 6–Tom Hooper, 5–Will Skelton, 4–Nick Frost, 3–Taniela Tupou, 2–Billy Pollard, 1–James Slipper
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