Paine appears to have beaten Peter Nevill and state teammate Matthew Wade to the wicketkeeping role, despite having only featured once for Tasmania this season.
Paine, who hasn't been playing as a keeper for Tasmania all season after Matthew Wade moved there to take the gloves and considered retirement earlier this year to go and work for Kookaburra, is the biggest surprise in a 13-man squad to take on England at the Gabba on Thursday that has caused considerable raised eyebrows here in Australia.
Dawid Malan became England's second centurion in its final warm-up match against a Cricket Australia XI as the tourist stepped up preparations for the Ashes.
Speaking on Paine's selection, Trevor Hohns said: "Tim was identified as an global player a long time ago and has always been renowned as a very good gloveman, also performing well for us whenever he has represented Australia in any format".
Pundits were quick to query the decision.
"To me, I think England are in a better situation going into that first Test than what Australia is". "I just don't get where that's come from, that's just a left-field selection". I know my game a bit better.
Renshaw has been in poor form for Queensland but the 21-year-old's omission is certain to be polarising given his solid performances in the last home summer.
"Cameron has been a player of interest to us for some time now, having been unlucky to miss out on the Test tour to Bangladesh that was cancelled in 2015".
Smith (captain), Warner, Bancroft, Bird, Cummins, Handscomb, Hazlewood, Khawaja, Lyon, S Marsh, Paine, Sayers, Starc.
There will be a new face at the top of the order in Cameron Bancroft, who has been scoring prolifically for Western Australia and replaces the out of form English-born Matt Renshaw.
The bookmakers have Australia at short odds to reclaim the Ashes urn, but former Test great Shane Warne says England have no fear for the home nation and are a top chance to upset the party. "I'm not suggesting for one moment that he'll be already included (in the match)".