England need 271 to win the fifth and final Ashes Test after bowling Australia out for 155 in their second innings on the third day of the day-night match Sunday in Hobart.
Pace bowler Mark Wood was the hero for England, taking a career-best 6-37 while Stuart Broad claimed 3-18.
Wicketkeeper Alex Carey top-scored for Australia with 49.
Australia have already retained the Ashes, leading 3-0.