Starc took a wicket with the first ball of a Test match for a record-breaking fourth time before skittling and rattling a bumbling Bangladesh batting line-up on Saturday.
The left-arm quick (6-12) had five wickets by his 22nd delivery as the visitors collapsed in a heap with poor batting to be all out for 64 off just 34 overs.
Australia went to tea on 3-50 in reply on a Great Barrier Reef Arena surface that assisted the pace bowlers.
Renshaw, opening the innings in his first Test since 2023, edged to slip after making just eight, before left-armer Shoriful Islam claimed two wickets in his first over.
Travis Head (22) chopped on for the third time in a row in this series.
Battling Labuschagne made four before he missed a delivery on leg stump that hit his thigh pad and rebounded on to the stumps.
Bangladesh had no answer to Starc's swing and pace, before Australia captain Pat Cummins chimed in with 3-25.
The total was the lowest by a team batting first in Australia since 1932 when South Africa were dismissed for 36.
The concern for Bangladesh was that the highest score was by No.11 batter Shoriful (14), last man out nicking the star of the show, Starc.
It was the sixth-fastest five-wicket haul in Test history, seven balls shy of Starc's own all-time record of 15 deliveries against West Indies in Kingston last year.
He took his tally of Test wickets to 441 and 10th on the all-time list, going two past South Africa great Dale Steyn.
Cummins won the toss and inserted the visitors, with Starc's pace and swing proving too hot to handle.
Opener Shadman Islam played across a swinging delivery and edged straight to Cameron Green in the gully, just as the sold-out crowd settled into their seats.
Shadman was the first of three left-handers to disappear into the pavilion for ducks inside Starc's opening eight deliveries.
A lazy waft by Tanzid Hasan presented third slip Beau Webster with a gift, and next ball captain Najmul Hossain Shanto was trapped in front.
The umpires checked to make sure Tanzid's shot wasn't a bump ball, as they did off the last ball of Starc's third over when Mominul Haque (nine) edged to Green with a woeful prod to a wide half-volley.
The outcome was the same and Starc had an incredible 4-4 off three overs.
Webster, much to the dismay of Starc, dropped an absolute sitter in the slips off Litton Das, but it made no difference.
The next ball Starc had his fifth wicket when he successfully reviewed an lbw shout, to the relief of Webster.
Alex Carey and Cummins had spoken before the Test about their determination to atone for the nine-wicket loss to Bangladesh in Darwin.
Australia announced on match eve that Queensland left-hander Renshaw would open the batting after Jake Weatherald was axed.
Bangladesh made just one change to the side that won by nine wickets in Darwin, with left-arm quick Shoriful replacing Ebadot Hossain.
Shoriful has recovered from a side strain that kept him out of the first Test.
