Australia level Ashes series

Resuming the third morning in a seemingly impossible position, trailing by 261 runs on 82 for five, England's daunting task became all the more difficult when they lost two wickets inside the first hour.

Despite a boundary-filled 108-run eighth-wicket partnership between Stuart Broad and Graeme Swann, England slumped to 263 all out six overs after lunch, handing Australia victory by an innings and 80 runs.

Nightwatchman James Anderson got off the mark with a slash through point for four off the second ball of the day from Ben Hilfenhaus to extend his run to 54 consecutive innings without suffering a Test duck.

It was his last act of defiance, however, with Anderson edging the next ball to the safe hands of Ricky Ponting at second slip to accelerate England's demise.

Wicketkeeper Matt Prior, unbeaten on four overnight, was England's last hope of mounting a serious fightback as their last recognised batsmen.

Playing his naturally aggressive game, Prior added 34 with new batsman Broad and at least ensured England avoided suffering their worst ever home Test defeat, which currently stands at an innings and 226 runs against West Indies at Lord's in 1973.

Having progressed to 22, however, Prior pushed at a Hilfenhaus outswinger and edged behind for wicketkeeper Brad Haddin to take a brilliant one-handed catch low to his right.

But just as England looked set to completely capitulate, Broad and Swann teamed up in a thrilling partnership which at least restored some self-belief in England's shattered ranks.

Australia's victory sets up a series decider at The Oval, starting on August 20.