With Australia one up in the series, the teams headed to Adelaide for the third Test.
England won the toss and asked Australia to bat, a decision that quickly backfired as openers Kepler Wessels and John Dyson gave Australia side a solid platform. Captain Greg Chappell and Kim Hughes then put on 126 for the third wicket, with Chappell making 115 and Hughes 88.
Together they helped Australia reach 438, as the England bowlers toiled.
In turn, England were bowled out for 216, despite Allan Lamb making 82 and David Gower 60, Geoff Lawson leading the way for the Australians with 4-56.
England were asked to follow on, Gower making 114 this time and Ian Botham 58. But the last five wickets fell for just 32, Lawson again leading the way with 5-66. England were all out for 304, leaving Australia with the simple task of scoring 83 to win. They managed that for the loss of two wickets.
To have any hopes of retaining the Ashes, England needed to win the fourth Test, in Melbourne. It ended up being one of the closest finishes in Test match history.
This time Australia won the toss and invited England to bat. Chris Tavare made 89 and Lamb 83, but the rest of the batting line-up disappointed as England were dismissed for 284.
In return, Australia recovered from 89/4 to 287, Hughes leading the way with 66, well supported by David Hookes and Rod Marsh, both of whom made 53.
England then posted 294, Graeme Fowler top-scoring with 65, while Botham contributed 46.
Australia needed 292, but in the end they fell just short. Hookes made 68 and Border an unbeaten 62, but Norman Cowans claimed 6-77 as Australia were all out for 288.
England had won by three runs.