Nathan McSweeney conceded Australia have "serious work to do" if they are to get back into the first Test against India.

The Baggy Greens trail by 218 runs heading into day three in Perth after an unbroken century partnership of Yashasvi Jaiswal (90) and KL Rahul (62) put the tourists well in control at 172-0 at stumps.

Though they resumed at 67-7, Australia could only add another 37 runs and were bowled out for 104.

McSweeney acknowledged the hosts must improve, and quickly.

"It definitely hasn't gone to plan in the past couple of days," he told ABC. "We've got some serious work to do to get back into this Test. It looks like it is getting easier to bat, so hopefully we get early wickets tomorrow and get batting.

"It is definitely a new-ball wicket. All the damage was done before we could get through to the 35-40-over mark with the bat, so the trick will be nullifying the new ball and having batters in for the 40-80-over mark."

Former Australia head coach Darren Lehmann added: "It was a tough day, but hats off to the two Indian batters. They were excellent today and weathered the storm, and they got to the stage where they could take the game on.

"India are well ahead of the game. The wicket has settled down a little bit, but that is more because the Australia bowlers were tired from the first innings and having to bat two hours today."