Steve Smith's hapless team were demolished for just 85, with Vernon Philander snaring five for 21 as South Africa seized control on just the opening day of the second Test.
At tea, the Proteas strengthened their hold with an unbroken stand of 43 with Stephen Cook on 23 and Perth centurion Dean Elgar not out at 17.
The capitulation revisited the nightmares of their miserable 47 in Cape Town in 2011 and England's demolition for 60 at Trent Bridge last year.
South Africa are on the verge of emulating the intimidating West Indies teams of the 1980s-1990s with three straight series wins in Australia after their convincing victory in Perth.
The Hobart rout also follows the first innings collapse of 10 for 86 in Perth when they squandered a 158-run opening stand to surrender meekly to the Proteas.
Cricket statisticians were in overdrive as Australia plumbed new lows in Hobart -- it was also their lowest total since their 76 at home against the West Indies in 1984.
It was an irresponsible shot from the Australian vice-captain and things only got worse in Kyle Abbott's following over when recalled Joe Burns was trapped leg before wicket.
The home side lost both openers for just two runs and it was a steady procession from the wicket with only Smith offering any spirited resistance.
The Australians reached lunch at 43 for six after Usman Khawaja edged Philander to Hashim Amla at slip for four and Adam Voges was out next ball, caught behind by Quinton de Kock.
Wicketkeeper Peter Nevill was the sixth wicket to fall after a DRS review of a lbw appeal off Kagiso Rabada with nothing going Australia's way.
Philander was forced to leave the field for shoulder treatment after a mid-pitch collision with Smith during a leg before wicket appeal, but returned after lunch.
Philander bowled newcomer Joe Mennie for 10 and JP Duminy took a screamer of a catch to dismiss Mitchell Starc, flinging himself one-handed to his right off Abbott.
De Kock took a blinding one-handed catch across the slips cordon to remove Nathan Lyon and end the Australian innings.
The South Africans earlier named Kyle Abbott in their only change in the absence of injured strike bowler Dale Steyn.
Australia dropped all-rounder Mitchell Marsh and gave Test debuts to batsman Ferguson at No.6 and paceman Mennie, while Burns replaced injured opener Shaun Marsh.
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