Seth MacFarlane's adult comedy, starring Mark Wahlberg as a man who lives with his talking childhood teddy bear, grossed almost nine million Australian dollars to take the top spot in its first full week in cinemas, holding off The Amazing Spider-Man, a new entry with receipts of almost AU$5.5 million.
Ted previewed on 243 screens last week and entered the standings in second place, grossing over AU$4.3 million in the process.
Family films have a strong showing on this week's chart, with last week's chart-topper Ice Age 4: Continental Drift, Brave and Snow White and the Huntsman all holding firm in the top five.
Katy Perry's 3D concert movie Katy Perry: Part of Me enters at number 6, with Bol Bachchan making up the last of the week's new entries in tenth spot.
The Australian box office top ten for the period July 5 to July 8 (all takings shown in Australian dollars):
1. (2) Ted - $8,747,211
2. (-) The Amazing Spider-Man - $5,453,600
3. (1) Ice Age 4: Continental Drift - $4,945,240
4. (4) Brave - $2,066,106
5. (3) Snow White and the Huntsman - $1,919,427
6. (-) Katy Perry: Part of Me - $700,000
7. (6) The Three Stooges - $634,778
8 (5) Prometheus - $296,414
9 (10) A Royal Affair - $162,747
10. (-) Bol Bachchan - $162,431
Watch the red band trailer for Ted below (note - clip contains adult humour):
Photo gallery - 'Ted':