The event, part of the Australian Open's opening week, sees professionals and amateurs battle in a knockout contest where a game of 'Rock, Paper, Scissors' decides who serves or receives and one point is enough to send a player through.
It proved hugely popular among fans after its introduction at the 2025 tournament, with some of the amateurs toppling more fancied opponents, before Australian professional Omar Jasika pocketed the inaugural A$60,000 (US$41,736) prize.
This year, Sydney amateur Jordan Smith bagged AU$1 million after beating Taiwan professional Joanna Garland in the final, having also downed Sinner and Amanda Anisimova earlier.
"The AO 1 Point Slam is unlike anything else in world sport," the Australian Open's Chief Tennis Officer Tom Larner said in a statement.
"It creates an opportunity for grassroots tennis players to share the spotlight with some of the biggest names in the game and delivers a level of excitement that only the Australian Open can provide."
At the Australian Open launch in Melbourne on Thursday, organisers said amateur players across the nation were competing in qualifying events at local clubs.
The 2027 champion will receive a signature AO 1 Point Slam trophy crafted from Australian silver, they added.
The final of the tournament takes place on January 13 at Rod Laver Arena. The Australian Open main draw will run from January 17 to 31.