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Australia face an uphill task to avoid defeat by India in the second Test after collapsing on the third day in Melbourne.
Trailing by 131 on first innings, the hosts lost three wickets for one run as they slipped to 99-6 at the MCG.
An unbroken 34-run stand between Cameron Green and Pat Cummins helped them to 133 without further loss at the close, leading by only two runs.
India were earlier dismissed for 326, with Ajinkya Rahane making 112.
Australia, leading 1-0 in the four-Test series, were reasonably settled on 71-2 before they lost four wickets in the final session.
All-rounder Ravindra Jadeja took 2-25 and debutant pace bowler Mohammed Siraj 1-28.
India were without fast bowler Umesh Yadav for much of Australia's second innings after he injured a calf.