
England are eyeing off their first Test victory in Australia for 15 years, set 175 to win at the MCG in just two days.
The Boxing Day Test is set to become the second two-day match of this Ashes after Australia capitulated for 132 less than 50 minutes after lunch on Saturday.
Travis Head (46, the highest individual score of this Test) and stand-in captain Steve Smith (24*) provided the only resistance in Australia's second innings that lasted only 34.2 overs.
After a record-breaking 20 wickets fell on day one, Australia's batsmen found themselves in deep trouble for the second time in 24 hours.
Starting the day at 0-4, Australia's top-order folded again as Brydon Carse (4-34), captain Ben Stokes (3-24) and Josh Tongue (2-44) took advantage of the MCG pitch with 10mm of grass left on it.
Even with fellow quick Gus Atkinson off with a hamstring injury, England made the most of the bowler-friendly conditions to give themselves a chance of restoring some pride on what has been a horror tour.
Coming to Australia with great expectations, England's hopes of regaining the Ashes were over in 11 days after defeats in Perth, Brisbane and Adelaide.
England's last Test victory came back in January 2011 at the SCG when they retained the Ashes with a 3-1 series win.
After Travis Head and Mitchell Starc stunned England in Perth to win the first Test of the series in two days, the MCG showpiece is set for a similar rapid-fire finish.
This pitch has been treacherous to bat on for both sides, prompting criticism even from fast-bowling greats such as Stuart Broad, Glenn McGrath and Brett Lee, and former England captain Michael Vaughan.
Across the first four-and-a-half sessions of this Test, the combined score is 30-384.
The wicket tally on Friday was the most on any day of a Test in Australia since 1951 when 22 fell between Australia and West Indies in Adelaide.
New opener Jake Weatherald, struggling No.3 Marnus Labuschagne and allrounder Cameron Green failed again, placing further pressure on their positions.
But they are bound to be given more leeway due to no player in this match reaching 50.
Head, England's nemesis after smashing centuries in Perth and Adelaide, was again flying and making batting look easy.
But Head copped a beauty from Carse about 20 minutes before lunch and was bowled.
Veteran Usman Khawaja (0) and wicketkeeper Alex Carey (four) also fell in a chaotic period before the break.
Weatherald, who replaced Sam Konstas as opener for the Ashes, is averaging just 20.85 from the first eight innings of his Test career.
The attacking left-hander, who came in at No.3 due to Scott Boland opening as a nightwatchman, left a ball from Ben Stokes that cannoned into the stumps.
Labuschagne ends a difficult 2025 after making just 271 runs at an average 20.84 from eight Tests.
The 31-year-old was dropped for the tour of the West Indies, but recalled for the Ashes on the back of strong Sheffield Shield form.
His superb catching has been a feature of the summer, but his returns with the bat have again not been up to scratch.
After running himself out on day one, Green again threw his wicket away in the second innings.
The 26-year-old tried to guide a Stokes ball away into the off-side, but was caught at second slip in a soft to get out.
Green is averaging just 18.66 in this series, batting at No.7 in this match after being as high as No.3 earlier this year when he returned from injury.