Ryan Harris starred again for Australia with his best figures in international cricket, but superb lower-order hitting from England put the home side in total control of the fourth Test at Chester-le-Street.
England were all out for 330, setting Australia a daunting target of 299 to win the match and maintain hope of drawing the Ashes series at The Oval.
At lunch, Australia were 0-11 needing a further 288 to win, with David Warner 2 not out and Chris Rogers surviving a DRS lbw review from England to be unbeaten on 5.
However, Harris’ brilliance proved with the new ball proved how tough the going will be for Australia’s inconsistent batting line-up on a pitch that will offer plenty for the England quicks and spinner Graeme Swann.
To win, Australia would need to produce the best fourth innings Ashes chase since 2001 when England posted 4-315 at Leeds.
On an action packed day four, Harris claimed 7-117 for the second innings, the best figures of his 15-Test career and the best performance by a bowler this Ashes series.
Harris finished with nine for the match after he roared out of the blocks with the new ball and skittled the stumps of Ian Bell and Matt Prior in successive deliveries to put himself on a hat-trick.
Stuart Broad survived it, but eleven balls later he was out fending a ferocious short ball to gully and Australia had their tails up with England eight down and 243 in front.
However, from there, Tim Bresnan (45) and Swann (30 not out) helped England pile on 55 more runs which could ultimately prove the difference.
The lead soon ballooned thanks to some aggressive batting from No.8 Bresnan who smashed five fours from 12 balls against Jackson Bird (0-67).
His ninth wicket partnership with Swann was worth 42 off 49.
Bresnan was lucky to still be out there after he shouldered arms to a Bird delivery when on 12 and only survived being out lbw on umpire’s call.
Umpire Aleem Dar gave Bresnan the benefit of the doubt despite him offering no shot and the ball striking his back pad.
Australia called for their final review, and the heartbreaking verdict was hawk eye had the ball clipping the top of off and Dar’s original decision had to stand.
Bird and Peter Siddle (0-59) both let their captain down and failed to match the class of Harris, when Australia desperately needed them to provide support.
Nathan Lyon finished with 3-55, but his dismissal of James Anderson should have come three boundaries and 13 runs earlier after Steve Smith dropped a sitter in the deep.
Shane Watson pulled up as well as could be expected from his groin and hip strain and is set to bat as required – however rules were changed in 2011 to ban batsmen from using runners.