Set 299 to win yesterday's fourth day at Chester-le-Street in Durham, Australia were well-placed at 168 for two but crashed to 224 all out, with paceman Stuart Broad ripping through the middle order on his way to taking six wickets for 50.
"No-one does shameful collapses quite like Australia and Michael Clarke's side conjured up one to remember, or rather to forget, at Durham to hand the Ashes series to England," said The Australian's cricket writer Wayne Smith.
Australia were scenting victory after a solid century opening stand between David Warner and fellow left-hander Chris Rogers but Rogers was out for 49 and his partner (71) was the third batsmen dismissed as eight wickets fell for just 56 runs.
"Australia had already conceded the Ashes but a humiliating batting collapse at Durham has rubbed salt into their wounds," said the Sydney Morning Herald's Chris Barrett.
Under the headline: "Choking: It's Australian for cricket," the Sydney Daily Telegraph said the defeat was hard to stomach after a sterling effort from the Australian bowlers, led by Ryan Harris.