A ruthless India tightened the screws on fragile Australia in the first Test in Perth on Monday with victory in sight, taking two wickets before lunch to leave the hosts battling for survival.

At the break on day four, Australia were 104-5 with a defiant Travis Head not out 63 and Mitchell Marsh on five as they chase a near insurmountable 534 to win.

Mohammed Siraj has 3-34 and Jasprit Bumrah 2-26.

The visitors declared at 487-6 late on day three after Yashasvi Jaiswal's superb 161 and an unbeaten 100 from superstar Virat Kohli -- then rocked Australia with three wickets.

Rookie Nathan McSweeney was out for a duck, nightwatchman Pat Cummins fell for two and an out-of-touch Marnus Labuschagne departed for three.

Faced with a mountain to climb, Australia resumed at 12-3 with Usman Khawaja on three and Steve Smith yet to score.

Khawaja added just one when he mistimed a pull shot off Siraj and got a big top edge.

It was caught by backtracking wicketkeeper Rishabh Pant, who became the most expensive player in Indian Premier League history Sunday at the Twenty20 tournament's lucrative auction.

Head survived a loud lbw shout on seven, but a review found it was missing leg stump and he battled on, smacking seven boundaries for his 17th Test half-century.

At the other end, Smith was felled by a Harshit Rana bouncer that slammed into his midriff, needing a spell lying on the ground to recover.

He was able to get up and play on, and like Head came through an lbw review on 12.

But the 62-run partnership was ended by Siraj, with Pant taking another neat catch after Smith edged a delivery he had to play on 17.