They squandered a bagful of chances in a one-sided first half and were punished when Tommy Rogic scored out of nowhere, his first off-target shot bouncing off a defender's back and his rebound slipping in under keeper Bernd Leno.
"Not everything went well and we have to correct things".
In the opening Group B clash, Chile's Arturo Vidal and Eduardo Vargas struck late goals to secure a deserved 2-0 win over Cameroon.
"We expect some nerves, as most of the players are playing their first tournament".
"It's a loss and the loss falls on me, it's my responsibility".
With an average age of just 24 years, four months, and a combined total of 179 worldwide appearances, Germany have the most youthful squad of the eight Confed Cup teams.
It's only a matter of time until he finds the net for England and opens his campaign in the European Championship.
Cahill - Australia's all-time leading scorer - had little time to influence the contest with Germany, thrown into the fray in the 86th minute.
It took less than five minutes for Germany to take the lead as Stindl scored after Julian Brandt cut the ball back to him in the centre of the box.
Germany sent on Timo Werner for the ineffectual Wagner, and the young RB Leipzig striker was causing Australia all sorts of problems with his pace, nearly scoring a fourth goal after a twisting and weaving run but could only manage to hit the post in the 75th minute.
This could be one of Australia's biggest test in the Confederations Cup group stages, and if they manage to even earn a point against the Germans, Australia will be pumped up for the remainder of the competition.
Having conceded after just five minutes, Australia regrouped and almost levelled but Trent Sainsbury could only head wide from a free-kick.
However, Australia finally threatened against the run of play in the 37th minute when Aaron Mooy's free kick was headed wide by an unmarked Trent Sainsbury, and four minutes later they did level through Rogic.
It was not to last.
Germany went back in front again thanks to skipper Draxler who converted a 44th minute penalty to make it 2-1.
And Germany extended their lead with a copybook move in the 48th minute.
Germany's players protested about the goal to American referee Mark Geiger - possibly for an offside or a handball by Juric from Rogic's original shot - and the official signalled that he would refer to the VAR in a tournament where its usage has been controversial.
Leno was at fault for both of Australia's goals.
Germany are blessed in the goalkeeper department with Paris St Germain's Kevin Trapp and Barcelona's Marc-Andre ter Stegen among the replacements in Russian Federation, yet Leno was given a vote of confidence by Low.