Tomic won the first battle of the tennis brats 6-3 6-4, although with little at stake it was difficult to get a read on their true form heading into the first major of the year.
With the encounter played in good spirits, Tomic claimed match point when he dished up a bizarre trick serve.
While bouncing a ball in the preparation for a regular serve Tomic flicked another ball between his legs that landed over the net to win the match, leaving Kyrgios laughing and shaking his head.
"I don't think there has ever been a player like BT," Kyrgios said.
"He won a title last year and it looks like he is carrying a bit of momentum which is good to see.
"He can make a run at the Australian Open, for sure."
Tomic's first set was almost flawless, while Kyrgios, who made a second round exit at Brisbane last week, looked a little underdone.
With his silky hands and superb touch, Tomic broke for a 3-1 lead and then steamed through the first set.
World No.51 Kyrgios had a break point early in the second but was unable to consolidate with Tomic then breaking at 3-3.
Kyrgios said he was happy to see Tomic back in form after missing the 2018 Open with his ranking plummeting to as low as 243 through the year.
Currently ranked 85, Tomic finished the year in style with an ATP title in China.
"It is great to see him back out here as I know he was going through some rough times," Kyrgios.
"It's sad to see a talent like that go down and just get beaten down so to see him with a smile on his face, embracing the crowd, he loves that."
After upsetting former world No.1 Rafael Nadal in a Fast4 event in Sydney, Kyrgios said he felt in good shape and planned to spend the remainder of the week honing his game at Melbourne Park.
"I just wanted to get out here today and hit some serves, get that match preparation, face some serves," he said.
"I'll get on site at Melbourne Park, fine-tune my game a little bit and make sure the body's right."
Tomic hoped his form held up and managed to equal or better his three fourth round appearances, in 2016, 2015 and 2012.
"He was serving well but I think I returned well," Tomic said.
"I've made third or fourth round many times and lost to the great players of the world so my target is to make another quarter or maybe a semi if I can."