Pat Cummins' brilliance and England's own lack of control has left the tourists on the brink of a Boxing Day collapse with the tourists going to tea at 6-128 at the MCG.
In a horror middle session for England, the tourists lost 3-67, including key men Joe Root and Ben Stokes, to leave their lower order exposed.
With Ollie Robinson at No.8 heading up a long tail, England are in particularly precarious position in a Test they must win to stay in the Ashes.
It would be the manner in which both Root and Stokes went that would annoy England the most.
Following a week where the need for patience leaving the ball was stressed in England honesty sessions, the captain and vice-captain were both dismissed outside off stump.
Root's was a particularly needless dismissal, hanging the bat out to a ball from Mitchell Starc and opening up the face before edging it to wicketkeeper Alex Carey for 50.
So enraged by the way he got out, the usually mellow Root hit his bat in anger the moment the ball landed in Carey's gloves.
Stokes' exit was more in the bizarre category, caught at point trying to uppercut Green when he was cramped for room by the allrounder on 25.
Just weeks after playing a fighting 206-ball knock in Adelaide, Jos Buttler joined them when he was caught in the deep off Nathan Lyon for three just before tea.
Earlier, Cummins (3-31) had owned the morning session after becoming the first Australian captain to opt to bowl first on home soil in eight years.
The paceman claimed wickets in both his first and fourth overs to have England teetering at 2-13 before claiming Dawid Malan on the last ball before lunch.
Cummins made a point of bowling a full length as he makes his return from a COVID-19 scare, having watched the Adelaide Test from his lounge after becoming a close contact.
He claimed his first scalp with just his fifth delivery when one nipped away from Haseeb Hameed and drew his edge for a 10-ball duck.
Called in to replace the struggling Rory Burns, Zak Crawley fell to Cummins on 12 when he edged the quick to gully.
