The 22-year-old Fraser-McGurk has paid the price for scoring just 16 runs, including two ducks, in his three knocks during the whitewash series win over the Scots and is replaced at the top of the order by Matt Short.
Fraser-McGurk, who had been a sensation in the Indian Premier League season, has only scored 97 runs in his last 10 T20 innings, including a tough spell in Major League cricket in the US.
Short, who had originally only been part of the ODI squad, has been thrust into the fray at the Rose Bowl instead after the early arrival of his first baby.
He was thrown straight into the action after captain Mitch Marsh lost the toss and new England leader Phil Salt opted to bowl on a damp Wednesday evening.
England, captained for the first time by Salt in the absence of the injured Jos Buttler, field three T20 debutants in their ranks - batter Jordan Cox and allrounders Jacob Bethell and Jamie Overton.
England: Phil Salt (capt), Will Jacks, Jordan Cox, Liam Livingstone, Jacob Bethell, Sam Curran, Jamie Overton, Jofra Archer, Adil Rashid, Saqib Mahmood, Reece Topley.
Australia: Travis Head, Matt Short, Mitch Marsh (capt), Josh Inglis, Marcus Stoinis, Tim David, Cameron Green, Sean Abbott, Xavier Bartlett, Adam Zampa, Josh Hazlewood.
