Tasmania's Faulkner, a left-arm fast-medium bowler and right-hand batsman, has played eight one-day internationals and three Twenty20s.
All-rounder Shane Watson, who started the series as an opener before moving to number six, is now set to bat in the number three position previously occupied by Khawaja.
Meanwhile, left-arm quick Starc's curious tour of alternate Tests continued with this latest recall.
Starc played in Australia's 14-run first Test defeat at Trent Bridge, was dropped for the 347-run second Test loss at Lord's only to be recalled again for the drawn third Test at Old Trafford and left out again at Durham.
But he has now got his chance again after paceman Jackson Bird failed to impress in the fourth Test.
Monday saw Starc criticise his in-out treatment by the selectors, with the bowler telling Australia's Fairfax Media: "I guess it would be nice to get a few games back to back and get that rhythm.
"But to have a chance at that consistency that everyone talks about - 'you've got to be more consistent' - well, it's a bit hard when you play one game and you're dropped."