The result has bettered the 28 year old from Masterton's previous best Grand Slam result achieved at last year's Australian Open and at the 2016 French Open and 2016 US Open.
Regardless how far Daniell goes from here, he will rise to a career high doubles ranking close to the world's top 30. It will enable him to go close to getting direct entry into the prestigious Masters 1000 tournaments in Indian Wells and Miami in March.
For making the quarter finals Daniell and Inglot will split $90,000 AUS ($99,000 NZ) if they don't go any further.
In the quarter finals they will face the winner of the match between the Inform ASB Classic champions Austrian Oliver Marach and Croatian Mate Pavic the 7th seeds, or the 10th seeds India's Rohan Bopanna and France's Edouard Roger-Vasselin. The match will be played on Wednesday.
Meanwhile Kiwi Davis Cup player Rubin Statham has been beaten in the second round of qualifying at the US150, 000 Newport Challenger tournament in the US. New Zealand's top ranked singles player has lost 4-6, 7-6 (3) 6-3 to American Marcus Giron.