The match was finely in the balance when England resumed their second innings on 33-2, leading by seven runs.
But Australia ripped through the order, with Mark Stoneman gone for 27 and Dawid Malan four.
Joe Root got his half century before swiftly being dismissed lbw.
And when Moeen Ali was controversially stumped on 40 – the spinner taken by Nathan Lyons – England’s tail end was whittled within another 40 runs.
Asked if he was angry about the stumping, Moeen said: “Not really.
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“Once you’re even your you have to respect that a move on.
“I’m more disappointed with myself that I didn’t get back.”
In response the Aussies opening pair of Cameron Bancroft and David Warner ate into their 170-run chase, both knocking 50s to end the day 114-0.
The hosts should now wrap up the Test on the fifth and final day on Monday.
More to follow…