Australia were dismissed for 267 in their first innings on day two of the third Ashes Test in Melbourne on Monday to lead England by 82 runs.
Opener Marcus Harris top-scored with 76 while David Warner chipped in 38.
Veteran Jimmy Anderson was the pick of the attack, taking 4-33 off 23 overs.
Australia lead the five-Test series 2-0 and only need a draw to retain the Ashes as current holders of the urn.