Looking to stay at the crease throughout the final day to claim a draw, the hosts were bowled out for just 146 as Nathan Lyon and Pat Cummins tore through their batting order.
It was an extraordinary defeat for England, who claimed a 90-run first-innings advantage before once again failing to diminish the influence of Steve Smith and also allowing Matthew Wade to claim a century on day four.
Below, Standard Sport assesses how every England player fared at Edgbaston...
Rory Burns 8
England’s big positive. Terrific century under major pressure, and batted on all five days.
Now needs to make sure it’s not a one-off.
Jason Roy 4
Shocker of a second innings shot clouds any sense of optimism over his future as a Test opener.
There were always likely to be ugly moments, but he must learn from this one – fast.
Joe Root 6
Looked decent in both innings, but could not make it count.
The team looks better balanced with Root at No3. Some suspect tactics on the fourth day.
Joe Denly 4
Two scores between 10 and 20 is worrying, and both dismissals were pretty soft.
Should get a little longer, but Australia will fancy him with both pace and spin.
Jos Buttler 3
Worrying that Pat Cummins got him twice, and that he was caught on the crease in both occasions.
Stokes should be batting ahead of him. New to short leg, did okay.
Ben Stokes 6
Never gave up with the ball and in field, and batted well in the first innings.
Jonny Bairstow 3
Two failures with the bat and not his tidiest keeping performance.
Is under pressure for his place in the side, but should play at Lord’s.
Moeen Ali 2
Nowhere near as influential as he should have been with the ball, and lost with the bat.
Nathan Lyon has dismissed him nine times in 10 Tests, and it is probably time for him to spend some time out of the side.
Chris Woakes 8
A cracking cricketer at home, who bowled and batted excellently in the first innings.
Dismissed Smith when getting just seven overs on the fourth day. Will be key at Lord’s.
Stuart Broad 8
Also bowled superbly, and handy first innings runs with Woakes.
Will need to be at his best in James Anderson’s absence.
James Anderson - n/a
Should he have played? Debate will rage.
All that’s clear is that his absence played a huge role in the outcome of the game.
