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Openers Rory Burns and Jason Roy were out cheaply, but Joe Root and Joe Denly stuck around as Australia sought a speedy victory.
A concussion ruled Steve Smith out of the third Test, but the Australia batsman faced some throw downs in the nets on Saturday.
England will need to make 359 in their second innings at Headingley or Australia will retain the Ashes with two Tests to spare.
Joe Root's second successive duck gave Josh Hazlewood encouragement and Australia ripped through England to take charge of the third Test.
Australia were 245 runs ahead with six wickets in hand when Jofra Archer hobbled off at Headingley.
Having dismissed England for 67 inside 28 overs, Australia reached tea at 82-3, with a lead of 194.
We take a look at the Opta numbers behind a dismal batting display after Australia skittled England for 67.
Australia had a first-innings lead of 112 after England were skittled for 67 on the second day of the third Ashes Test.
England's batting frailties were once again exposed as Australia seamer Josh Hazlewood took three wickets to leave the hosts 54-6 at lunch.
Having bowled Australia out for 179 on Thursday, England lost three wickets in the first hour in favourable batting conditions.