The win in Perth is also skipper Tim Paine's first win as Australia captain.
Tim Paine's Team broke into a wild celebration, sparked by the 146-run win, Australia's first Test win since the ball-tampering scandal in March.
Australia made a light work of India lower order, dismissing them inside the first 40 minutes on the final day, ending a six-match winless streak.
On the other hand, Virat Kohli's Team India, who are hoping for a historic first Test series win on Australian soil, got a reality check after their famed batting line-up was exposed by Australian bowlers.
India were chasing 287 runs to win but after being reduced to 112 for five at stumps on Monday, they were dismissed 146 runs short early on day five.
Left-arm paceman Mitchell Starc finished with 3/46, while spinner Nathan Lyon took 3/39 on a feisty pitch. For India, Ajinkya Rahane made 30 with the bat and Rishabh Pant also 30.