Dawid Malan (62), Moeen Ali (30), Tom Curran (39) and Broad (31) departed, while debutant Mason Crane (4) was run out as England were all out for 346, with lunch taken 10 minutes early at the SCG on Friday.
Pat Cummins and Josh Hazlewood dropped two gilt-edged catches on a disappointing morning for the Australians in the field, though Steve Smith provided another highlight.
The momentum was with Australia, who struck late on Thursday to leave England 233-5 after the priceless wickets of captain Joe Root and Jonny Bairstow.
Australia skipper Smith, who dropped Malan on 34 on day one, ensured the hosts continued where they left off, while dismissing doubts over his own fielding with a sensational one-handed catch to remove the England left-hander.
Smith got down low to complete a one-handed catch in the slips from a Mitchell Starc (2-80) delivery – England only adding 18 to their overnight score.
Curran should have been the next player in the pavilion. The 22-year-old hit a reckless shot but Cummins spilled a simple catch which robbed the luckless Nathan Lyon (1-86) of his first wicket of the match after Smith’s missed chance on Thursday.
Cummins (4-80) was brought into the attack following his sitter and he almost made amends with his first ball but it was Hazlewood’s (2-65) turn to make a mistake in the field – Moeen’s skied shot going straight through the bowler’s hands.
But Cummins eventually got his man after Moeen gloved through to wicketkeeper Tim Paine.
Broad and Curran showed no mercy – the former clearing the ropes twice – to frustrate Australia.
However, Cummins snapped the pair’s growing partnership, Curran sent back to the pavilion before Broad hit a shot up in the air and straight down the throat of Smith as Lyon celebrated his first wicket of the match, while Crane’s run out ended the innings.
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