The Wallabies have an extensive schedule in the autumn series and played two tough tests against Scotland and France, winning the first by a single point and losing the second by the same margin in Paris last weekend.
They take on top-ranked Ireland and Wales later this month, leaving coach Dave Rennie to rest the majority of key forwards for Saturday’s clash against Italy and make substantial changes to the backline.
He named front-rower Alaalatoa as captain, setting him up as a potential successor to Michael Hooper and James Slipper.
"He's certainly got massive respect for his attention to detail, his work ethic," Rennie told a news conference on Thursday.
"He obviously captains the Brumbies and we've chosen him for that reason. He's our best option and what happens long term, who knows that, but he can definitely skipper Australia long term.
"Anyone who knows Allan well knows he's a hell of a man."
There will be a debut for winger Mark Nawaqanitawase, which completes a stellar year that started with him unable to get a place in the New South Wales Waratahs team.
"He’s had a hell of a season," added Rennie. "He’s a big man. He’s made big shifts defensively and he’s got post-tackle presence. He kicks the ball well. Generally, we’ve got a pretty small back line, so he gives us a point of difference."
The game is also a chance for Noah Lolesio to re-stake his claim at No.10 after being dropped during the Rugby Championship when the veteran Bernard Foley was brought back into the fold. Foley takes a break after playing the last four tests.
"We’re conscious of the fact it’s a good Italian side. They’ve made really good shifts over the last 12 months. We’ve picked a side we think is strong, fresh, and so there is no plan to throw guys into the game early. We’ll judge it as we see it," added Rennie.
Italy have lost all 18 previous clashes against Australia, the last four years ago in Padua, but enjoyed a morale-boosting win over Samoa last weekend.
Australia lineup:
15-Jock Campbell, 14-Mark Nawaqanitawase, 13-Len Ikitau, 12- Hunter Paisami, 11-Tom Wright, 10-Noah Lolesio, 9- Jake Gordon, 8-Pete Samu, 7-Fraser McReight, 6-Ned Hanigan, 5- Will Skelton, 4-Nick Frost, 3-Allan Alaalatoa (captain), 2-Folau Fainga’a, 1-Matt Gibbon
Replacements: 16-Lachlan Lonergan, 17-Tom Robertson, 18-Taniela Tupou, 19-Darcy Swain, 20-Langi Gleeson, 21-Tate McDermott, 22-Ben Donaldson, 23-Jordan Petaia