At the interval, Australia were 137 for five in their second innings with four sessions remaining. Captain Michael Clarke, who scored 187 out of his team's 527 for seven declared in the first innings, was unbeaten on 14.
England were dismissed for 368 in their first innings in the morning session after resuming on 294 for seven, with Stuart Broad ensuring his team avoided the follow-on by taking three boundaries off a Ryan Harris over.
He fell shortly afterwards, caught behind for 32 off an outside edge to give off-spinner Nathan Lyon his only wicket of the innings.
Matt Prior was dropped at mid-wicket by Steven Smith on 18 off Lyon and Graeme Swann (11) struck a straight six off the same bowler before he gave wicketkeeper Brad Haddin his fifth catch of the innings with an inside edge from the bowling of Peter Siddle.
Prior (30) was the last wicket to fall, caught by David Warner to present Siddle with his fourth wicket.
Australia, needing quick runs to give themselves time to bowl out England for a second time, promoted Warner from number six to opener to partner fellow left-hander Chris Rogers.
The pair put on 23 before Rogers was caught behind for 12 by Prior tumbling to his left off Broad five minutes before the break.
Warner, playing his first test of the series after he was suspended for punching England opener Joe Root in a Birmingham bar during the Champions Trophy, was quickly into his stride.
He survived a barrage of short-pitched balls from Broad and a confident appeal for a catch behind the wicket after an attempted hook at the England fast bowler to reach 41 from 57 deliveries with five boundaries when he was adroitly caught by Root at deep square-leg off Tim Bresnan.
Usman Khawaja (24) was bowled around his legs by Swann and Shane Watson (18), who was dropped down the order after opening in the first two tests, fell attempting to force the pace. Watson was caught on the third-man boundary by Kevin Pietersen chasing a wide delivery from Bresnan.
Smith, who was dismissed 11 short of a century in the first innings, lofted both Bresnan and Swann for straight sixes but was then run out for 19 after a mixup with Clarke.
(Writing by John Mehaffey in London; Editing by Clare Fallon)
