Unlocked iPhone 5 16GB smartphones will go on sale for $788 in both black and white variants, $11 below Apple's asking price.
The 32GB and 64GB models are not part of the promotion.
The device will be sold through 50 Australian retail outlets across all eight states and territories.
Both black and white variants of the iPhone 5 will be available.
Dick Smith said that the promotion excludes online purchases.