Wallabies will not 'wallow in self-pity' after crushing Lions loss
Schmidt's men led for 79 minutes in Melbourne on Saturday and thought they had done enough to bank a sensational win and level the three-Test series.
But Hugo Keenan's try at the death for a 29-26 victory left them shattered and fuming.
Schmidt was adamant the try should not have stood, pointing to a high clean-out in the lead up by Jac Morgan on Carlo Tizzano. But their protests were waved away by Italian referee Andrea Piardi.
Schmidt said contact was made above the shoulders, which made it illegal.