The ACT Brumbies are sitting atop the ladder three weeks out from the finals, the Queensland Reds are also heading for the playoffs, while Australian sides have only lost two home games all season in a vastly better showing than in recent years.
Despite a run of four straight defeats, the NSW Waratahs also remain a slim chances of squeezing into the finals.
But it's also the brand of rugby the Brumbies and Reds have been producing that has Williams convinced an Australian team can at last break New Zealand's decade-long domination of Super Rugby.
"I hope so and that's coming from a Kiwi. It's been a tough few years," the two-time World Cup winner told AAP.
"The great thing about this season is they're actually playing really, really good footy. Entertaining footy. Footy that you want to turn the telly on and watch.
"Will that get them across the line? I'm not too sure because it's some stiff competition.
"But that success breeds optimism and it's something Australia needs going into the Lions series and the upcoming World Cup (in 2027).
"So it's good. Aussies love backing Aussies and getting on the train to success. That's what it's about.
"At least we're not sitting here beating the drum that's not making any noise. Australian rugby's making some really good music."
Williams, though, is not so sure the Wallabies will regain trans-Tasman bragging rights and return the Bledisloe to Australia for the first time since 2003.
But the All Blacks great is predicting a titanic battle.
"Look, as a Kiwi, hopefully the drought continues," he said.
"But I honestly think that it's going to be extremely competitive and I think they can get it done, the way they've been playing, the Australian players.
"So it's not crazy to think that they could get it back. But I'm a Kiwi, bro. I could never go against my brothers."
Adding to the enormity of the challenge for the Wallabies this year is the fact the Bledisloe series will again only two Tests, meaning Australia must win both.
A drawn series is never good enough, as the Wallabies have learnt five times since the All Blacks regained the prized silverware with a 2-0 series victory in 2003.
Another loss at Eden Park, where the Wallabies haven't won since 1986, on September 27 and the Two-Test series will be over even before Joe Schmidt's men travel to Perth for game two on October 4.
"In 2017 we played up in Brisbane and you guys got us up there but it's a tough proposition to beat a New Zealand team two times in a row," Williams said.
"We'll keep it. We'll still keep it over there. It's all good brother."
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