Australia whittled England's innings lead down to 51 before being dismissed for 204 early on the third day of the fourth Ashes Test in Melbourne on Saturday.
Wicketkeeper Brad Haddin hit his fifth half-century of the series to be the last wicket to fall for 65.
Haddin put on 40 useful runs for the 10th wicket with Nathan Lyon, who remained 18 not out.
Haddin, one of the heroes of Australia's Ashes-series victory, was finally out when he top-edged an attempted pull shot off Jimmy Anderson and was caught by wicketkeeper Jonny Bairstow.
Anderson finished the best of England's bowlers with four for 67 off 20.2 overs.
Haddin and Lyon frustrated England for the opening 43 minutes of the third day and England skipper Alastair Cook had his field well spread to stem the flow of Australian runs.
Australia already have clinched the Ashes with big wins in the opening three Tests in Brisbane, Adelaide and Perth, but England have had a much better Test match in Melbourne and for the first time have an innings lead.
