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Australia declared in the second session with the score reading 575 for 8, taking a huge first-innings lead of 386.
Australia moved closer to winning the second Test and the series against South Africa on Wednesday, owing to Alex Carey's maiden century, which put them in command. The hosts declared at lunch on day three with a 386-run lead after South Africa were knocked out for 189 in their first innings.
The Proteas were down 15-1 when play was called off early at the Melbourne Cricket Ground owing to persistent drizzle.
After losing the first Test in Brisbane, their attempt to rescue the Test and the three-match series got off to a disastrous start, with under-pressure skipper Dean Elgar caught by Carey off Pat Cummins without scoring in the second over.
David Warner dropped Theunis de Bruyn on three, but he was not out on six with Sarel Erwee on seven.
Carey, in his 14th Test, was magnificent in reaching three digits for the first time before being caught and bowled by Marco Jansen for 111. Despite a fractured finger, a struggling Cameron Green was not out 51 at the declaration, partnering Mitchell Starc on 10.
"It was nice to be able to consolidate from our start from yesterday," Carey, only the second wicketkeeper to make a Test century at the MCG after Rod Marsh, told reporters.
"This one's really special, obviously it's a big moment. But it's also great to help the Australian cricket team be in a strong position. That's what we play for, to win games."
After South Africa gave themselves a ray of hope with early wickets, including Warner first ball after resuming on 200, Carey and Green heaped on the agony in a 117-run partnership.
Australia started the day on 386-3, with Travis Head on 48 and Carey on nine, following Warner's heroic unbeaten double century in his 100th Test in sweltering heat on day two.
After scoring his third Test double ton, the experienced opener retired weary with acute cramp, but he returned to the crease when Head was out for 51.
Mitchell Starc, who had a finger injury, bowled for Australia on Day 3, while Cameron Green will miss the rest of the Test. Green, who suffered a finger injury, has been ruled out of the third Test, which begins on January 3 in Sydney.
South Africa's chances of reaching the World Test Championship final will be hampered by a crushing setback.
READ| Australia vs South Africa: Cameron Green ruled out of Sydney Test with fractured finger
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