England needed 271 to win the fifth and final Ashes Test after bowling Australia out for 155 in their second innings on the third day of the day-night match Sunday in Hobart.
Pace bowler Mark Wood was the hero for England, taking a career-best 6-37 while Stuart Broad claimed 3-18.
Wicketkeeper Alex Carey top-scored for Australia with 49.
Australia have already retained the Ashes, leading 3-0.
Scoreboard
Scoreboard at the end of Australia's second innings on the third day of the fifth and final Ashes Test against England at Bellerive Oval in Hobart on Sunday:
Australia 1st innings 303 (T. Head 101, C. Green 74; S. Broad 3-59)
England 1st innings 188 (C. Woakes 36; P. Cummins 4-45)
Australia 2nd innings (overnight 37-3)
D. Warner c Pope b Broad 0
U. Khawaja c Billings b Wood 11
M. Labuschagne c Billings b Woakes 5
S. Smith c Malan b Wood 27
S. Boland c Billings b Wood 8
T. Head c Billings b Wood 8
C. Green lbw Broad 23
A. Carey c Carey b Broad 49
M. Starc c Pope b Wood 1
P. Cummins b Wood 13
N. Lyon not out 4
Extras (b1, lb3, nb1, w1) 6
Total (56.3 overs) 155
Fall of wicket: 1-0 (Warner), 2-5 (Labuschagne), 3-33 (Khawaja), 4-47 (Boland), 5-59 (Head), 6-63 (Smith), 7-112 (Green), 8-121 (Starc), 9-151 (Carey), 10-155 (Cummins)
Bowling: Broad 18-2-51-3, Woakes 11-3-40-1 (1nb), Robinson 11-4-23-0, Wood 16.3-2-37-6 (1w)
Toss: England
Umpires: Rod Tucker (AUS), Paul Wilson (AUS)
TV umpire: Paul Reiffel (AUS)
Match referee: David Boon (AUS)