Andrew Caddick took an early wicket and then Robert Croft and Alex Tudor took two in quick succession before Waugh was carried off.

That left Australia 88 for three, in effect four, but Damien Martyn and Mark Waugh raced Australia to victory before tea on the third day.

It was a potent spell from Gillespie that tilted the game Australia's way as England were bowled out within the first hour for 162, adding just 18 to their overnight score.

The South Australian seamer claimed his 100th Test wicket in the process to put Australia on course for retaining the Ashes as they seek a third successive victory in the five match series.

Gillespie's share was three wickets for six runs in 14 balls.

He had Ian Ward LBW, bowled Robert Croft in his next over and then had Andrew Caddick caught behind in his third.

After a short break for rain, Shane Warne wrapped up the innings by claiming Alex Tudor for his sixth wicket.

Gillespie began by removing Ward before England scored a run.

Croft heads for the pavilion

After Warne bowled the remaining delivery of his over, Gillespie struck with his fourth ball as Ward was LBW for 13.

After two bouncers and a wide ball, Gillespie jagged a delivery back into the left hander to talke his first wicket of the innings.

His second soon followed as Croft sought to drive but succeeded only in playing on to his stumps.

Warne, later named man of the match, wrapped up the innings. as Tudor tried to hit over mid-wicket, mistimed his stroke and gave Ricky Ponting a straightforward catch at extra-cover.

Warne finished with six for 33 - his best figures in England - while Gillespie, wicketless overnight, ended with three for 61.

England needed an early breakthrough and Gough was unfortunate not to remove Matthew Hayden in his first over after hitting the tall left-hander on the front pad.

Caddick had Michael Slater caught by Marcus Trescothick at second slip to give England an early fillip, but Australia were also scoring quickly.

Hayden played positively and was particularly severe on anything short.

Croft had Ricky Ponting caught behind immediately after lunch and when Hayden fell to Tudor for 42 and Waugh was carried off England had the glimmer of a chance.

But Australia responded in characteristic forthright fashion and Martyn and Mark Waugh needed only 47 balls to post a 50 stand and sweep the Ashes out of England's reach.