Reece Walsh was penalised for a double movement while Australia trailed New Zealand 22-16 in the 67th minute of their Rugby League World Cup match.
The Kangaroos fullback thought he had scored, but referee Adam Gee ruled that he had moved the ball after being tackled.
Walsh believed the tacklers had released him, although Dane Gagai still had a hand on him.
Because the arm carrying the ball had touched the ground short of the line, Walsh could not reach out to score, and New Zealand received a penalty.
Walsh had otherwise played superbly after being controversially selected ahead of Roosters captain James Tedesco, and Australia went on to win.
NRL commentator Sean Ormerod questioned the penalty on SEN radio on Friday, suggesting Walsh could instead have been sent back to play the ball.
He compared that approach with passing after a referee calls "held", which now results in a redo rather than a penalty.
"It's my most hated rule in rugby league," Ormerod said.
"Everything we do in today's game is to make it faster and more appealing to the part-time watcher. We want to see tries and points.
"How in today's footy us that still a penalty? I'm OK with it not being a try, but it can't be a penalty. Surely the referee can go 'no, the tackle was complete, go back and play the ball'. We've seen some absolute shockers in NRL land this year where players have had one fingernail on their backside, which is [apparently] tackle complete."
Fans also supported a rule change on social media.
One wrote: "Certainly not the worst rule in the game but this would be a good rule change."
Another argued: "If the same action happens anywhere else on the field, nothing happens. It should be go back 10m and play the ball for the next tackle."
A third asked: "Anywhere else on the field the ref just says go back to the spot to play it. Why is it a penalty on the tryline?"