A pace-friendly pitch is predicted at the Great Barrier Reef Arena in Mackay as the hosts look to bounce back from a nine-wicket upset in the first Test in Darwin last week.
Captain Pat Cummins initially told a news conference they were considering Scott Boland in an all-pace attack alongside himself, Mitchell Starc and Josh Hazlewood.
But barely an hour later officials confirmed Lyon was safe after another look at the wicket.
The 38-year-old Lyon, who took 1-125 in Darwin in his first match back after a hamstring injury last December, has not missed a home red-ball Test when fit since 2012.
Renshaw is the only change, coming in for his first Test since 2023 to replace opener Jake Weatherald, who was dropped after six underwhelming Tests.
"A really tough one for Wethers, I thought he was awesome around the group, really like the way he goes about it," Cummins said ahead of the clash starting on Saturday.
"But over the course of six Test matches (he) just didn't quite score the runs that he or we would've liked."
Cummins said left-hander Renshaw, who will open with Travis Head, deserved his chance.
"He's been really impressive, some great off-season tours to Pakistan and Bangladesh with the white-ball, so he looks in good nick."
With the exception of Steve Smith (71 and 44) and second-innings century-maker Cameron Green, the Australian batting was poor in Darwin -- the team's first Test since January.
"I certainly felt like we didn't play anywhere near our best, and they played really well and they deserved to win," Cummins said.
"So, I think it's going back to when we play well. Fortunately we've got a decent body of work to look back on.
"I thought our prep was excellent, so I think everyone's in a pretty good nick. So it's just about translating our form into actually a good result."
Australia Second Test XI:
Matt Renshaw, Travis Head, Marnus Labuschagne, Steve Smith, Cameron Green, Alex Carey, Beau Webster, Mitchell Starc, Pat Cummins (capt), Nathan Lyon, Josh Hazlewood