Australia were set a target of 299 to win the fourth Ashes Test after bowling out England for 330 in their second innings on the fourth day at Chester-le-Street on Monday.
Ian Bell could only add eight runs to his overnight century before he was bowled by Ryan Harris for 113.
Queensland fast bowler Harris led Australia's attack with a Test-best return of seven wickets for 117 runs in 28 overs.
But nightwatchman Tim Bresnan, four not out overnight, bolstered England's total with a dashing 45 and Graeme Swann made a quickfire 30.
England, who have already retained the Ashes, lead the five-match series 2-0.