Phoebe Litchfield and Annabel Sutherland resumed play, with Sutherland riding her luck to a fifty, while Litchfield departed for a well-made 45.
Alyssa Healy joined Sutherland, and the pair cruised to tea at 154/2, trailing by 16 runs.
Sophie Ecclestone provided a breakthrough for England, dismissing Healy for 34 and ending the 71-run partnership. Shortly after, Australia took the lead.
Beth Mooney joined Sutherland, who reached her 3rd Test century, becoming the first woman to score a Test ton at the MCG.
Australia added 124 runs in the session and resumed after dinner at 278/3, with a lead of 108.
Mooney's fifty came before Sutherland's brilliant 150. Her innings ended on 163 (258) as Ryana MacDonald-Gay broke the 154-run stand.
Ash Gardner's quick 44 swelled Australia's lead to 235. At stumps, Tahlia McGrath remained unbeaten on 9*, with Mooney stranded on 98*.