Alan Jones, who was coach during the Wallabies' historic Grand Slam tour in 1984, said Australian rugby has "big problems" following Saturday night's 50-21 loss to the All Blacks in Sydney.
"They are not player problems, they are coaching problems and sometimes what the coach says borders on the indecipherable," said Jones in his regular editorial comment slot on Channel Nine today.
"Sometimes it's better to be not coached than badly coached.
"Australian rugby is full of talented players, our talent is being betrayed.
"The real tragedy is that Eddie Jones, the unsuccessful coach, has the permeating influence right throughout Australian rugby.
"That, like Saturday night, is more than unhealthy."
The Wallabies must beat South Africa in Brisbane on Saturday night to avoid losing four consecutive matches for the first time in 21 years.
Eddie Jones said yesterday the Wallabies still have enough time to improve before the defence of their World Cup crown begins in Sydney on October 10.
But Alan Jones questioned whether the Wallabies understand their coach, who has a reputation as a statistically-minded boss.
"God only knows how the players work out what he means when he says 'We need our No.7 who plays on the ball and a No.8 who mixes it a little bit and a No.6 who makes decisions on when to play on the ball and off the ball'," said Alan Jones.
"I have no idea what that means.
"Elsewhere he said after the match 'We need that understanding in our consistency in the way we defend turnover ball'."
Alan Jones described the loss to the All Blacks as "almost unprecedented and humiliating" after Australia conceded a record 50 points on home soil.