Resuming the fourth day leading by 44 on 479 for five, Australia took advantage of better than expected weather conditions to reach a commanding 674 for six before declaring following centuries for Marcus North and Brad Haddin.
It was their highest total against England since being dismissed for 701 in 1934 at The Oval, their fourth highest ever in the Ashes and established a 239-run first innings lead to leave England needing to bat more than four sessions to save the match.
But that objective suffered a serious setback with England losing Alastair Cook and Ravi Bopara as they slumped to 20 for two at tea as they began their attempt to prevent Australia taking an early lead in the npower series.
England had begun the day knowing they needed early wickets to prevent Australia dominating a third successive day, but instead failed to end their destructive partnership for 42 overs as North and Haddin became the third and fourth members of the Australian line-up to reach three figures, another Ashes record.

England captain Andrew Strauss had strangely waited over an hour before he first turned to spin and instead opted for his seamers at the start of the day and enjoyed little success.
He finally turned to spin in the 14th over of the morning and off-spinner Graeme Swann was introduced at the Cathedral end three overs later and immediately made an impression with neither North or Haddin suddenly looking comfortable at the crease.
Australian wicketkeeper Haddin, who resumed overnight on just four, dominated the early run-scoring and survived an lbw appeal in Swann's second over after he had progressed to 35 with umpire Aleem Dar rightly ruling the ball had hit his pad outside the line of off-stump.
He was more fortunate off the next delivery, however, when he edged a turning delivery onto his pad which looped onto the leg side but out of the reach of Cook at short leg.

But it was a rare moral victory for England as Australia progressed quickly towards their declaration target, adding 97 in 15 overs after lunch before captain Ricky Ponting finally ended England's 12 hours and 24 minutes punishment in the field.
North was the more methodical of the pair and brought up his hundred shortly before lunch with a scrambled two off James Anderson, but Haddin was the more aggressive and progressed from 50 to three figures in 48 balls with a century which included nine fours and two sixes.
He was finally out when he was caught at long on off all-rounder Paul Collingwood for a superb 121 to leave North unbeaten on 125 and leave England with a tricky seven overs to negotiate before tea.
After such a long period in the field it was inevitable England would suffer an early setback with Cook falling lbw to an inswinger from left-arm seamer Mitchell Johnson.
Australia's hopes of wrapping up victory were given an even bigger lift only seven balls later, however, with umpire Billy Doctrove raising his finger again when Ben Hilfenhaus hit Ravi Bopara on the pads to a delivery which appeared to missing the top of the stumps.
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