It took Italy 19 attempts to finally beat the Wallabies - a famous 28-27 win in 2022 - and followed it up with a 26-19 upset last year in Udine.
Losing twice in a row to Italy would have been unthinkable several years ago.
But they are no longer a rugby minnow, as evidenced by victories over England and Scotland in the Six Nations Championship this year.
Potter says the Wallabies, who have slid to No.8 in the rankings following nine losses from their past 10 Test matches, are now well aware of the danger Italy pose.
"That midfield is dangerous. Their outside backs are talented and fast," Potter said ahead of Saturday night's Nations Championship clash in Perth.
"We've got some bad memories of Udine last year, so I think even more so than last year, we understand the threat that's coming this weekend."
When asked whether it was a surprise just how good Italy were last year, Potter replied: "I suppose a little bit."
"Italy have just gotten better and better. I mean, since that day (they beat us last year), I'd say the Italian team that we've seen over the last seven, eight months has been even better than the side before that.
"In the Six Nations, they were brilliant. They knocked off some of the top teams there and really went pretty close to fighting for that trophy.
"On the spring tour last year, they were beating us and others.
"I think we're understanding now that the Italians are a very strong rugby team."
Saturday's match marks the farewells of Wallabies coach Joe Schmidt and his bucket hat-wearing assistant Laurie Fisher.
Wallabies players have made it their mission to send the duo off on a winning note.
Schmidt has again backed in Declan Meredith as his starting flyhalf, with the Wallabies attempting to snap a six-Test losing run.
Ben Donaldson, who missed last week's 42-26 loss to France due to a calf injury, will provide cover off the bench.
Hometown hero Carlo Tizzano has been handed a start in the No.7 jersey, with last week's two-try hero Fraser McReight to provide support off the bench after he pulled up sore from the France clash.
Australia led France 21-12 at halftime before conceding the next 30 points.
A week earlier, the Wallabies coughed up a 12-point lead against Ireland on the way to a heartbreaking 33-31 loss, with Donaldson missing a penalty after the final siren.Â
The Wallabies concede their second-half performances haven't been good enough of late and are determined to go the full 80 minutes against Italy.
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