Mark Wood had Chris Rogers caught by Alastair Cook in the slips for 43.
Australia made it to afternoon drinks on 135-1, with David Warner (73) and Steve Smith (9) still at the crease.
Not out openers Chris Rogers and David Warner struck 82 in the opening two hours at the Kia Oval.
Rogers calmly made his way to 27 and Warner reached his half centurion before play ended for lunch.
Lancashire will release opener Paul Horton at the end of the season.
The Sydney-born batsman has spent 12 years at Old Trafford, scoring 21 first-class centuries and averaging 37.63.
The 32-year-old top-scored for the Red Rose in their 2011 County Championship success.
Horton is unlikely to play again this season after the club confirmed his departure.
Australia survived the first hour of the Fifth Test in tricky conditions at the Kia Oval.
Chris Rogers, playing his last Test before retirement, and David Warner made it to 19-0 after being put into bat by England skipper Alastair Cook.
England chose to bowl first on a cloudy morning at The Oval as they bid to add a first ever fourth Ashes Test victory in a home series to their success already over Australia this summer.
The hosts were predictably unchanged, after it emerged on Wednesday that James Anderson is not yet fit, from the team that won by an innings to go 3-1 up and regain the urn at Trent Bridge.
Australia did spring a minor surprise, choosing Peter Siddle ahead of Pat Cummins to replace injured seamer Josh Hazlewood.
The tourists made one other anticipated change, all-rounder Mitch Marsh back at the expense of his brother Shaun.
England captain Alastair Cook has announced that James Anderson has not fully recovered from a side strain and will miss the fifth and final Ashes Test against Australia at The Oval, with the team set to be unchanged.
Yorkshire have announced the signing of England's limited-overs all-rounder David Willey from Northamptonshire on a three-year contract.
Willey has been a stand-out performer in the shorter formats for Northants in recent years and created shockwaves last week by blasting the quickest hundred of this year's NatWest T20 Blast, and the joint eighth fastest of all-time, off just 40 balls.
But he will leave Wantage Road at the end of the current campaign to link up with reigning county champions Yorkshire.
"I am really excited to be joining Yorkshire and being part of a progressive side," said the 25-year-old.
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