England have set Australia a target of 299 to win the fourth Ashes Test in Durham.
The hosts were bowled out for 330 during the morning session on Monday following a devastating spell of bowling from Ryan Harris.
With England starting on 234-5, Harris tore through the lower order, taking out Ian Bell (113) and Matt Prior (0) with successive balls.
Stuart Broad was the next to go (13) before Tim Bresnan fell five runs short of his half-century.
England's time at the crease finally came to an end when Nathan Lyon dismissed James Anderson for a duck.