Perth: Mitchell Johnson's 6-38 and Shane Watson's unbeaten 61 put Australia in command. At the end of Day 2, Australia were 119/3, a lead of 200 runs.
England started the day at 29/0 and raced away to 78 without losing any wicket in the first hour. But then, local lad Johnson struck to get Cook and the ripped through the middle and lower order to finish with 6/38 in 17.3 overs. Strauss and Bell got half-centuries but could not kick on.
In reply, Australia started cautiously but then, Finn and Tremlett pegged them back with three quick wickets. Since then, Watson and Hussey have stabilized with an unbeaten 55-run stand for the fourth wicket. Plenty of time left in this game with 3 days to go.
Australia will be looking for a lead of round 400, because mind you, this is the same venue where South Africa chased down a record 414. England would be aiming to bowl out Australia and then get set to chase down the target on a good track.
Earlier, a six-wicket haul from Mitchell Johnson has seen Australia bowl out England for 187 in their first innings at the WACA as momentum in the third Test swung dramatically on the second day.
While Australia's initial 268 appeared a sub-par score, especially as English openers Andrew Strauss and Alastair Cook took the tourists through to 78 without loss on Friday morning, the Aussies now enjoy an 81-run lead after a sensational bowling performance.
The recalled Johnson may have produced statistically the second-worst performance in Test history during a first-Test horror show in Brisbane as he conceded 0-170, scored a pair and dropped a few catches.
But all was forgiven as he returned to the venue where he captured eight South African wickets almost two years ago to the day, the 29-year-old scything through England's top order by taking 4-7 in 27 balls before lunch.
Johnson finished with 6-38 all up as he cleaned up England's tail, while Ryan Harris more than chipped in 3-59 and Peter Siddle added 1-25 from nine aggressive overs.
Everything appeared to be going England's way in this contest early on Friday morning as Strauss and Cook took England through to 78 without loss, the pair scoring at better than a run a ball during the first 40 minutes.
Making matters worse for Australia, was what appeared a calamitous missed chance from Brad Haddin and Shane Watson, who allowed a thick edge from Strauss, who was 16 at the time, to bisect them without either going for the ball as it streaked through to the fence.
But then Johnson struck, removing Cook for 32 as his mis-timed drive found Mike Hussey in gully and from there, England lost all 10 of their wickets for 109 runs.
Jonathan Trott (four) and Australia's tormentor in Adelaide, Kevin Pietersen (zero) were both trapped in front by inswinging Johnson deliveries within the one over, while Harris eventually earned Strauss's wicket when the England captain edged through to the keeper for an impressive 52.
Paul Collingwood (five) fell just before lunch as he was also trapped in front after failing to read another Johnson inswinger, although Australia had to rely on the decision review system to remove him as umpire Marais Erasmus initially gave him not out.
Five down at lunch, England's hopes rested on their last recognised batsmen Ian Bell and Matt Prior.
The pair added 47 runs, but all the while Australia had been softening Prior up through a barrage of short-pitched bowling from Siddle as the hosts set an aggressive field designed to curb the wicketkeeper's natural tendency to hook.
Bouncer after bouncer came Prior's way as Siddle charged in from the Prindiville end, the onslaught eventually proving too much as Siddle struck Prior on the body once, before doing it again with the next delivery, the ball ricocheting back onto the stumps and dismissing Prior for 12.
Graeme Swann (12) looked keen to stick around as Bell produced a classy half-century full of elegant strokes, but the spinner soon edged one through to the keeper as Harris produced a delivery that nipped off the crease nicely.
Chasing quick runs, Bell (50) looked to thrash the bat at a very wide Harris delivery and was caught by Ricky Ponting at second slip becoming Harris' third wicket before Johnson cleaned up Chris Tremlett (two), knocking his stump a metre out of the ground, and James Anderson (zero)
Breif scores
Australia 268 and 119 for 3 (Watson 61*, Finn 2-48)
England 187 (Bell 53, Strauss 52, Johnson 6-38)
Status Australia lead by 200 runs