James Pattinson also found a spot in the 17-man squad whereas Michael Neser earned his maiden call-up following an impressive run with the Dukes ball.
David Warner and Steve Smith have been picked for the first time since their ball-tampering bans ended in March this year.
The duo will hold the key for Australia’s batting as conditions in England have been tough for batsmen in the last two years.
"David Warner, Steve Smith and Cameron Bancroft have forced their way back into the Test squad through the excellence of their recent performances," said Australia national selector Trevor Hohns in a statement.
"David and Steve also have the advantage of being proven players at Test level while Cameron has produced impressive numbers for county side Durham this season.
"His innings in the intra-squad match in Southampton on a tough pitch was outstanding and showed his quality."
The first Test at Edgbaston starts on August 1, with Australia looking to bag their first Ashes series in England since 2001.
Tim Paine (c), Cameron Bancroft, Pat Cummins, Marcus Harris, Josh Hazlewood, Travis Head, Usman Khawaja, Marnus Labuschagne, Nathan Lyon, Mitchell Marsh, Michael Neser, James Pattinson, Peter Siddle, Steven Smith, Mitchell Starc, Matthew Wade, David Warner