Dubbed the "Bracket Challenge", organisers are offering the massive payout to anyone who can flawlessly forecast all 127 matches in either the men's or women's singles draw before the tournament begins on Sunday.
"This is a game of skill, not chance," Tennis Australia's Chief Commercial Officer Cedric Cornelis said in a statement.
"The AO Bracket Challenge is about rewarding tennis knowledge and creating an exciting new way for fans to engage with the tournament."
Participants must submit their complete bracket predictions after the singles draws are published on Thursday.
The competition is open only to Australian residents this year and the window for gazing into the crystal ball closes one hour before the first match on Sunday, with each person limited to one entry per draw.
Consolation prizes are also on offer for those falling short of perfection, with the highest-scoring brackets in each draw set to win $10,000.
The Australian Open runs from January 18 to February 1 at Melbourne Park.