Australia will try to mount a rescue mission on Monday to keep their faint hopes alive of regaining the Ashes.
England will resume their first innings in complete control of the fourth Test at the MCG after crushing the home side on Sunday.
The five-Test series is tied on one match apiece and an England win in Melbourne will mean they retain the Ashes.
The tourists will start day two on 0-157 in reply to Australia's embarrassing 98 - their lowest-ever first-innings score against England at the MCG.
Captain Andrew Strauss is 64 not out and Alastair Cook unbeaten on 80.
But Australian vice-captain Michael Clarke said his team was determined not to give in and noted all the batsmen would have a chance to redeem themselves in the second innings.
He said the first priority was to bowl England out as quickly as possible.
"Obviously (it was) a tough day ... but fortunately there's four days left in this Test match," Clarke said.
"It's really important we come out tomorrow and show that intent - obviously we've got to take these first 10 wickets, that's our priority."
After the English attack performed brilliantly in overcast and moist conditions, the Australian bowlers lacked penetration.
They will have to lift noticeably to keep the tourists from batting through day two and building a lead of around 400, which would end any chance of an unlikely Australian comeback win.
Australia gambled by picking a four-man pace attack, rather than picking spinner Michael Beer for his Test debut.
That backfired when they lost the toss and batted so poorly in their first innings.
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