Australia were all out for 326, after being sent into bat by England, late on the opening day of the final Ashes Test on Friday. At stumps, England were 8/1.
Steve Smith was the last man out for Australia, having scored 115 with Ben Stokes taking six for 99 at the Sydney Cricket Ground.
Stokes captured three wickets in his last over and had Smith caught at mid-on by substitute Joe Root.
Australia fought back from 97 for five to put the pressure back on to England in their chase for a 5-0 series clean sweep.
Brad Haddin scored 75 in a 128-run sixth-wicket stand with Smith that rescued the Australian first innings.
England opener Michael Carberry fell early thanks to a brilliant catch from Nathan Lyon at leg slip.