Australia skipper Ricky Ponting was gracious in defeat.
"It's been a tough week, to be beaten by an innings and plenty is obviously a disappointing result, but you've got to give full credit to England with the way they've played their cricket from the start of the tour," he said, adding that his own batting performance had been "horrible".
Australia had resumed on 169 for six, still facing a 246-run deficit to make England bat again but lost their remaining wickets shortly before lunch to be all out for 258.
Chris Tremlett removed Mitchell Johnson for six in the second over of the morning, the Australian paceman pushing half-heartedly at a fuller delivery that took an inside edge before crashing into off-stump.
Peter Siddle defiantly slogged his way to 40 before belting a lofted drive off Graeme Swann straight to Kevin Pietersen at long on.
Image: England's teammates celebrate, center, while Australia's batsmen Brad Haddin, left, and Ben Hilfenhaus, right, prepare to leave the field at the end of the fourth Ashes cricket test at the MCG in Melbourne, Wednesday, Dec. 29, 2010.