Mitchell Starc was the star bowler for Australia in the 2nd session as England lost four wickets, including Joe Root and Dawid Malan.
Resuming the session at 140/2, Cameron Green gave the much-needed breakthrough to hosts as he broke the 138-run partnership, removing Root for 62.
Australian bowlers suddenly looked threatening from ends as Malan too edged one to the slips to give Starc his second wicket. Marnus Labuschagne grabbed a sharp catch to remove Ollie Pope for five.
Starc kept bowling from one end and troubled Jos Buttler with the angle. He finally got the edge as Buttler departed for a 15-ball duck.
Ben Stokes and Chris Woakes have begun the rebuilding process, adding 28 runs in 55 balls for the seventh wicket.
Brief Scorecard:
England - 197/6