He features in the back-three alongside Leigh Halfpenny and George North with Scarlets duo Hadleigh Parkes and Jonathan Davies named in midfield. Gareth Anscombe and Gareth Davies continue their partnership at half-back.
In the pack Francis comes into the front-row alongside Nicky Smith and Elliot Dee.
Beard, who started both tests against Argentina in the summer, packs down alongside captain Alun Wyn Jones. The back-row of Dan Lydiate, Justin Tipuric and Ross Moriarty remains unchanged from the opening encounter.
Wales extended their unbeaten run to six matches with victory over Scotland and Gatland is challenging his players to make it seven on Saturday.
“We were pleased to get a good opening win under our belts last weekend and this Saturday is all about building on that,” said Gatland.
“With selection we wanted some continuity and to be consistent but also mindful there are a number of players who did really well for us in the summer and they need to be rewarded and have their opportunity.
“Adam (Beard) impressed in the summer as did Josh (Adams) and they deserve the chance to start.
“There is a really good balance to the team, a lot of competition which is exactly what we wanted.
“The bench is packed with quality and experience and it will be great to see them have an impact on Saturday.”
Wales’ experienced replacements bench features Elliot Dee, Rob Evans and Dillon Lewis as the front-row replacements with summer tour co-captains Cory Hill and Ellis Jenkins completing the forward contingent. Tomos Williams and British & Irish Lions duo Dan Biggar and Liam Williams provide the backline cover.
Elsewhere, Israel Folau is shifting back out to the wing with the returning Samu Kerevi taking his place in the midfield.
Wales: Leigh Halfpenny; George North, Jonathan Davies, Hadleigh Parkes, Josh Adams; Gareth Anscombe, Gareth Davies; Nicky Smith, Ken Owens, Tomas Francis; Adam Beard, Alun Wyn Jones (C); Dan Lydiate, Justin Tipuric, Ross Moriarty.
Subs: Elliot Dee, Rob Evans, Dillon Lewis, Cory Hill, Ellis Jenkins, Tomos Williams, Dan Biggar, Liam Williams.
Australia: Dane Haylett-Petty; Israel Folau, Samu Kerevi, Kurtley Beale, Sefa Naivalu; Bernard Foley, Will Genia; Scott Sio, Tolu Latu, Allan Alaalatoa; Izack Rodda, Adam Coleman; Jack Dempsey, Michael Hooper, David Pocock.
Subs: Tatafu-Polota-Nau, Sekope Kepu, Taniela Tupou, Rob Simmons, Ned Hanigan, Nick Phipps, Matt To’omua, Jack Maddocks.