The tourists were building their first innings in an 83- run partnership between Dawid Malan and Moeen Ali before Malan's dismissal triggered a clatter of wickets before lunch.
Joe Root's team tumbled from 246 for four to be all out as Australia seized the upper hand following an attritional opening day.
Fast bowlers Mitchell Starc and Pat Cummins each took three wickets and spinner Nathan Lyon two to bundle out the tourists with six wickets for 56.
Seven balls later, in the 104th over, off-spinner Lyon removed all-rounder Moeen Ali leg before wicket for 38, with the dismissal confirmed on review.
Lyon, who was threatening with his drift and turn, struck again with the first ball of his next over, bowling Chris Woakes for a duck.
Wicketkeeper Jonny Bairstow followed shortly afterwards for nine, as he attempted to pull Pat Cummins only to dolly to gloveman Tim Paine for his first catch on his Test return after seven years in the wilderness.
Starc finished with three for 77, Cummins took three for 85 and Lyon two for 78.
Malan had looked in command before his false shot to a Starc lifter and batted for 130 balls in his first Ashes Test, hitting some impressive boundaries.
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