Dan was amongst the replacements for Scotland's 38-3 victory over Samoa but held off the challenge from Gordon Ross and will start against the Wallabies at the Telstra Dome.
"It will be very exciting, I'm very happy to be getting the call up, I'm just looking forward to playing out there," said Dan.
Graeme Morrison is rewarded for his outstanding display against the NSW Waratahs with promotion into the 22-man Test squad for the first time in his career. Jon Petrie joins Graeme on the replacement bench.
"Graeme Morrison has had two outstanding games," said Matt Williams.
"I have always fancied him as a 12 rather than outside centre and he certainly fulfilled my expectations the other night against NSW.
"To be marked by Nathan Grey, who is a quality player, and perform as he did - he has earned his place on the bench."
Sean Lamont keeps his place on the wing while Andy Henderson will be hoping for a repeat of his impressive performance against Samoa.
Gordon Bulloch and Donnie Macfadyen are in the Scottish pack.
15 Hugo Southwell (Edinburgh Rugby)
14 Sean Lamont (Glasgow Warriors)
13 Ben Hinshelwood (Worcester)
12 Andrew Henderson (Glasgow Warriors)
11 Simon Webster (Edinburgh Rugby)
10 Dan Parks (Glasgow Warriors)
9 Chris Cusiter (The Borders)
1 Tom Smith (Northampton Saints)
2 Gordon Bulloch (Glasgow Warriors)
3 Bruce Douglas (The Borders)
4 Stuart Grimes (Newcastle Falcons)
5 Scott Murray (Edinburgh Rugby) CAPTAIN
6 Jason White (Sale Sharks)
8 Allister Hogg (Edinburgh Rugby)
7 Donnie Macfadyen (Glasgow Warriors)
Substitutes
16 Steve Scott (The Borders)
17 Craig Smith (Edinburgh Rugby)
18 Iain Fullarton (Sale Sharks)
19 Jon Petrie (Glasgow Warriors)
20 Mike Blair (Edinburgh Rugby)
21 Gordon Ross (Leeds Tykes)
22 Graeme Morrison (Glasgow Warriors)