Joseph, who missed the hosts' 28-25 defeat by Wales, will return at outside centre against the Wallabies at Twickenham on Saturday alongside Brad Barritt in the England midfield.
Number eight Ben Morgan is also fit to replace Billy Vunipola, who has been ruled out of the rest of the tournament with a knee injury.
Joe Launchbury will start at lock instead of the injured Courtney Lawes and scrumhalf Ben Youngs is doubtful after hurting his ankle in the Wales match.
Coach Stuart Lancaster will name his team on Thursday for a game England must win to retain a realistic chance of making the quarter-finals.
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(Reporting by Ed Osmond; editing by Sudipto Ganguly)
