Fast bowler Jackson Bird emerged the proud recipient of career-best figures in front of his home crowd, as Australia assumed early command on day one of the third and final Test against Sri Lanka at the Sydney Cricket Ground.

The hosts put a green pitch to good use after winning the toss and opting to bowl first, dismissing the opposition for 294 shortly before the close of play on Thursday.

Bird proved the pick of an attack lined with four seamers - and spinner Nathan Lyon. Openers Dimuth Karunaratne and Tillakartne Dilshan and tail-enders Rangana Herath and Suranga Lakmal all fell prey to the right-armer's pace and bounce.

''I grew up here for 24 years and it was good to have my friends and family here and do well in front of them. I don't think I felt like I had a point to prove, it was nice to go back to my home ground,'' enthused Bird.

''The odd ball was doing a little bit. If you bash the wicket you got a little bit more out of it. We probably bowled the right length towards the end of the day, when there wasn't much movement."

Australia's day was not free of trouble, with the veteran Michael Hussey dropping a catch and visiting left-hander Lahiru Thirimanne key to half-centuries partnerships alongside captain Mahela Jayawardene and all-rounder Angelo Mathews.

Thirimanne achieved the highest score of his career en route to 91, striking 13 fours and a six during his 215-minute and 151-delivery stay at the crease, before Lyon prevented the batsman from scoring a maiden century.

"At lunch we had a bit of a chat and we felt we probably bowled two sides of the wicket. We were a little bit short with the new ball and probably weren't patient enough. I thought in the second session we were pretty good. Towards the end of the session we built up a bit of pressure and then the last session we built up that pressure and got the wickets,'' concluded Bird.