The Wallabies have announced Marika Koroibete, Pone Fa’amausili and Isi Naisarani will not be considered for selection for this week's opening Bledisloe match.
The Rebels trio have been reprimanded after they breached team protocols following a team dinner.
They were found to have been drinking alcohol well beyond an agreed time prior to a training-free day.
The Wallabies confirmed whilst they had not conducted any illegal behaviour, no damage and no complaints were made, they made the call in order to uphold their internal standards and practices.
"We are building a culture of working hard for each other and being accountable for our actions," Wallabies coach Dave Rennie said in a statement.
“On this occasion, these three players haven’t lived up to that and we’ve taken a very clear stance.
“Ultimately these three men have paid a big price for their decisions but that’s the standard we expect of each other.”
Rennie told reporters their actions had 'angered' the playing group as they look to break their Eden Park and Bledisloe droughts.
"We've got a big squad here - 42 players. Thirty-nine understood the importance of getting together and getting connected and having a quiet beer and three guys lacked the discipline beyond that," Rennie said on Wednesday.
"We've stated the importance of our preparation for the All Blacks. We all need to be at our very best to try and force the All Blacks to be below their best.
"This obviously didn't fit with their mindset so incredibly disappointed, to be honest, there's a big chunk of that group who are pretty angry."
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This decision was supported by Rugby Australia CEO Andy Marinos, who reaffirmed their expectation that the side upholds themselves at all times to the highest standard.
“Rugby Australia supports the action taken by the team, and the internal standards they have set for each other," Marinos added.
“As an organisation, we expect the highest standards at all times. While we also acknowledge that this is a minor incident, I applaud Dave and the team for taking such an open and transparent approach."