The New Zealander, who is due to leave his current post in July, stressed he would remain loyal to his existing group of players despite being sounded out by New Zealand Rugby to replace recently departed coach Scott Robertson.
"It is an incredible job, obviously I've been involved with the All Blacks before and thoroughly enjoyed it," Schmidt told Australian media.
"(But) you build a loyalty to the players you're working with and the staff that you're working with, and even to the people who've supported us.
"Allianz Stadium last year, when we played the Argentinians, it was fantastic. The same in Townsville and Newcastle, and Perth for the ABs game. The support during the Lions series...I feel like I can't just walk out and swap sides."
Schmidt has been in charge of the Wallabies since 2024 and has overseen the rebuilding of the team in the lead-up to Australia's hosting of next year's World Cup.
He will stand down from the role later this year, to be replaced by Les Kiss.
Former Japan boss Jamie Joseph and ex-Wallabies coach Dave Rennie are among those in the running for the All Blacks post and Schmidt backed the country to bounce back after a disappointing spell under Robertson.
"Whoever gets the job, the All Blacks are always formidable, their player pool (strength) is evidenced by the way they finish in Super Rugby on a regular basis, playing the finals," he said.
"We'd love to get (an Australian) team in there this year into the finals because I think there's a few teams that are building really well.
"So, I guess with the loyalty that you have to the group you're working with, you can't suddenly swap sides. That's how I feel anyway."
