Woods, who was this week deposed as world No1, bogeyed the first hole in what proved to be his only blemish en route to a four-under-par 68 in the opening round.
"He started out pretty sloppy but his iron play from around the turn onwards was exquisite," said US Open champion Graeme McDowell, who played with Woods.
Woods is three strokes behind Italian leader Francesco Molinari, who used four successive birdies on his back nine as a springboard to a sizzling seven-under 65, one stroke better than Englishman Lee Westwood, the new world No 1.
Woods is playing for the first time in more than five years without heading the world rankings, but that doesn't seem to bother him as he continues to work on swing changes with new coach Sean Foley.
"The things I've been working on with Sean, they felt good today. I hit a lot of good shots," Woods said.
"I felt I was able to control my distance well coming into the greens and I also putted really well."
Woods hasn't won in 51 weeks, since his triumph at last year's Australian Masters at Kingston Heath.
He will defend his crown next week at Victoria.
Adam Scott heads the Australians on three-under 69, with Robert Allenby, Stuart Appleby, Michael Sim, Marcus Fraser and Richard Green on 72.
Scott demonstrated his usual stellar long game, but not for the first time had a frustrating day on the greens.
"The putting is feeling good," Scott said.
"It's as smooth as my strokes felt all year, to be honest, but I just missed them today.
"I think I hit all 18 greens. I made it really easy on myself but missed a lot of six-footers."
Scott said he woke up with a sore throat, perhaps the result of overdoing things off the course lately.
"I haven't had much rest," he said.
"The three weeks I had at home were pretty hectic. I was training, had my sisters wedding and I ran an event in Sydney one night.
"I kind of feel like I have come back on tour for a break and I think it's catching up with me.
"I was in Beijing on Monday doing an outing. I'm probably a little run down."
Green was also feeling lousy, due to jetlag after arriving from England only a couple of days ago.
"I had no sleep last night. I was very tired this morning," said the recent Portugal Masters champion, who was happy to salvage an even par round from what could have been a considerable wreck.
Alistair Presnell shot a 74, but couldn't blame his tools.
He faced the prospect of playing with borrowed clubs, but his sticks arrived on Wednesday after going missing for a day during his flight from the US.
