Australia appear highly likely to earn a consolation victory in the final Ashes Test after dominating proceedings on day two at The Oval.

The tourists have already lost the five-match series but enjoyed a superb day with bat and ball to leave England on the brink of facing the follow-on at 107-8 in reply to 481 all out.

Steve Smith (143) - the tourists' captain-elect after Michael Clarke announced he would retire from international cricket following this game - recorded his 11th Test century to help Australia build on an overnight total of 287-3.

That was followed by a startling England collapse in which Mitchell Marsh (3-18) played a starring role for Australia.

Peter Siddle (2-18) - in his first appearance for Australia since December - and Nathan Lyon (2-32) also impressed as wickets tumbled once again, as they have on so many days during this series.

Australia - 3-1 down following a heavy defeat at Trent Bridge - made solid early progress as Smith and Adam Voges (76) extended a partnership worth 101 overnight.

Their stand was finally broken at 146 when Voges was trapped lbw by Ben Stokes (3-133), and Smith was handed a reprieve on 92 as he edged the next delivery, from Steven Finn (3-90), through to Jos Buttler only for a no-ball to be called.

Finn did claim his 100th Test wicket by dismissing Marsh for 3, before Moeen Ali (3-102) disposed of Peter Nevill (18) and Mitchell Johnson (0) in the final over before lunch.

With Australia 376-7 at the interval, England looked to be gaining momentum, but Smith and Mitchell Starc produced a fine riposte, the latter thumping 58 from 52 deliveries.

Mark Wood (1-59) eventually ended a counter-attacking alliance of 91 by bringing Smith's stay at the crease to an end, and Starc and Siddle quickly followed as England kept Australia under 500.

Alastair Cook (22) started fluently in reply but was bowled by a superb delivery from Lyon before tea.

And England went on to collapse alarmingly in the evening session, with Siddle and Marsh to the fore.

Adam Lyth's poor run of scores continued as he spooned Siddle to mid-on having made 19 and the same bowler cleaned up Ian Bell for 10 with a beauty that clipped the top of off stump.

Joe Root (6) became Marsh's first victim seven balls later when he was caught behind and Johnson got in on the act by removing Jonny Bairstow (13).

Lyon then bowled Buttler for one and Marsh accounted for Stokes (15) and Stuart Broad (0) in a double-wicket-maiden before Moeen and Wood, who was also caught off a no-ball, each made it through to stumps on eight not out.