Offspinner Nathan Lyon proved the threat that England feared and has 3-31 in 11 overs.
England captain Joe Root (28) was the last man out in a poor morning session for the hosts. He was visibly angry with himself after tamely sending the ball to Cameron Bancroft at short leg off Lyon.
Jos Buttler (1 not out) and Ben Stokes (0 not out) are at the crease.
Lyon came on after an hour's play and soon settled a big question of the day: Could white-ball specialist Jason Roy patiently stay in without taking risks in smashing quick runs? That was answered in Australia's favor when the explosive opener needlessly advanced against Lyon. The ball turned and clattered into the stumps. Roy was out for 28 after sharing a 41-run partnership with Root and England on 60-2.
Bancroft caught Joe Denly (11) after Lyon struck again to leave England 80-3.
Earlier, Rory Burns (11) was the first man out — caught by Lyon off Pat Cummins — when England had added only six runs after resuming on 13-0.
Australia declared at 487-7 in its second innings on Sunday. Steve Smith and Matthew Wade scored centuries as the hosts were set a target of 398.