England declared on 9-391 just prior to lunch on day two, a whopping 331 runs in front of Australia's first innings total.
Mitchell Starc was the shinning light for Australia, taking 6-111, as Joe Root made a sublime 130, to further establish himself as one of the best batsmen in the world.
Australia then started their second innings full of promise and it almost looked as though order had been restored, with the Aussies reaching 0-113.
However, once Chris Rogers was dismissed for 52, the tourists suffered yet another disastrous batting collapse.
Australia lost seven wickets for just 123 runs to reach 7-241 at stumps on day two, still 90 runs behinds England's first innings total.
Adam Voges (48) and Mitchell Starc (0) are the not out batsman overnight.
Ben Stokes was the pick of the bowlers, taking 5-35 off 16 overs.
Former Australian leg spinner Shane Warne was most critical of Steve Smith's dismissal, in which he once again chased a wide ball outside the off stump.
"It's a lack of awareness, that was just horrific. It was a one-day wide just before tea," Warne said on Sky Sports.
"It's not good enough. You just let that through to the keeper.
"I cannot believe a guy would play that shot - and you're ranked the No.1 batsman in the world."
See the full scorecard at Cricket.com.au
