Australia needs another 137 runs with four wickets in hand to secure victory in the first Ashes Test against England heading into the last day at Trent Bridge.
After resuming their second innings on 326 for 6, England's Ian Bell completed his century in the morning session when the hosts were dismissed for 375, setting Australia a winning target of 311.
Mitchell Starc and Peter Siddle took three wickets each while James Pattinson and Ashton Agar took two.
In response, Shane Watson (46) and Chris Rogers (52) got the tourists off to a good start with an 84-run opening stand and at 3-161 Australia was mounting a strong chase, however the loss of 3-3 late in the day put Australia on the back foot heading into the final day.
At stumps on day four, Ashton Agar is not out on one and Brad Haddin is unbeaten on 11.