The two nations go into the five-Test clash, which will get underway next week, with England having won the last three series.
However, Vaughan has admitted that while he believes that England are still the "clear favourites", he could see the home side causing "an upset".
"Aussie squad selected is in a better place than any of the last 2 Ashes series. Top 6 looks more settled and the bowling has options," he wrote on Twitter.
"England are still clear favourites but I do think this Aussie team could cause an upset. I never felt that in the last 2 series."
Australia named their 12-man squad for the first Test in Brisbane earlier today.