Australia needed only 11.4 overs on the final day of the second Test to take England’s remaining four wickets and claim a two-nil lead in the Ashes series.
Resuming on 6-247 chasing 531 to win, England were bowled out for 312 under overcast skies at Adelaide Oval.
Paceman Peter Siddle led Australia’s second innings attack with 4-57 and Ryan Harris took 3-54.
England must now lick their wounds ahead of a quick turnaround for the third Test on a bouncy WACA pitch in Perth starting on Friday.
In a promising sign for England, wicketkeeper/batsman Matt Prior recovered from his double failure in the first Test, completing a fine knock of 69 on Monday, including 12 fours off 102 balls.
Play started 10 minutes late because of morning showers as England looked to the heavens in the hope of a rain-affected draw.
Stuart Broad (29) played with gay abandon despite England’s talk of showing fight to try to draw the match.
The talkative tailender pulled a six from the fourth ball of the day and top-edged a bouncer to deep backward square to lose his wicket on the following delivery from Siddle at 7-255.
BBC commentator Geoff Boycott said Broad’s dismissal was stupid.
England’s Barmy Army fans began the day singing “Who do you think you are kidding Mitchell Johnson”, although they soon switched to Bon Jovi’s “Living on a prayer”.
Harris removed Graeme Swann (six) caught at second slip.
Prior helped England reach 300 for the first time in the series before hooking to deep fine leg and departing caught as Siddle made his fourth key breakthrough of the innings.
Australia’s quicks peppered England’s tail with short balls and Monty Panesar fell to Harris for a duck, ending the match with Jimmy Anderson 13 not out.
England’s second innings has featured a series of verbal clashes and a physical shoulder-bumping incident between Aussie pace bowler Mitchell Johnson and England batsman Ben Stokes.
Australia captain Michael Clarke exchanged words with Prior late on day four and Broad argued with Johnson as the players walked off the field on Sunday.
Johnson’s terrifying pace in England’s first innings, in which he claimed 7-40, is expected to Australia’s trump card in Perth this weekend.