JOHANNESBURG (AFP) - Australia were on target for victory but South Africa gave themselves an outside chance of salvaging the first Test on the fourth day at the Wanderers Stadium Sunday. South Africa, set an improbable 454 to win, were 178 for two at the close. Australia collapsed to 207 all out in their second innings as South Africa fought back on their best day of the match. But Australia's dominance of the first three days left them well placed to bounce back from a home series defeat against the same opponents earlier in the season. South Africa, who trailed by 246 runs on the first innings, started solidly in their second turn with the bat, with captain Graeme Smith and Neil McKenzie putting on 76 for the first wicket. McKenzie was caught behind off Mitchell Johnson for 35 but Smith and Hashim Amla batted confidently in a second wicket stand of 54 to raise hopes of a come from behind win for South Africa even better than their 414-run chase in the first Test of the Australian series in Perth last December. But new cap Ben Hilfenhaus struck a crucial blow when Smith top-edged an attempted pull to mid-on after hitting 69 off 110 balls. Another debutant Phil Hughes top-scored for Australia with 75. He was twice given not out despite gloving balls from Morne Morkel to wicketkeeper Mark Boucher, with South Africa failing to refer the decisions to television umpire Asad Rauf. The tourists reached 99 for one but lost three wickets in the space of four balls without another run added. Another four wickets fell for the addition of 48 runs before the last two wickets added 60 runs. Brad Haddin made a successful appeal against an lbw decision given to left-arm spinner Paul Harris by umpire Billy Bowden when he had 15. He went on to hit 37 before he was caught behind off Makhaya Ntini shortly before lunch. All-rounder Jacques Kallis took three for 22 and Ntini three for 29. Kallis sparked the Australian collapse when he dismissed Ricky Ponting and Michael Hussey off successive deliveries. Ponting pulled a short ball to deep midwicket and Hussey made a mess of an attempted pull to sky the ball to square leg. Two balls later Kallis at slip dived to his right to hold a sharp edge from Michael Clarke off left-arm spinner Paul Harris. Hughes finally fell to a sharp diving catch at leg slip off Harris after facing 121 balls and hitting 11 fours and a six. South Africa failed to refer a not out decision against Hughes Saturday when the batsman was on 21. Off the seventh ball of Sunday's play, before he added to his overnight 36, there was an almost identical situation when Morkel gloved a lifting delivery. Again, the South Africans, who had made an unsuccessful challenge in Australia's first innings and the maximum two permitted in their own first innings, did not ask for intevention by the television umpire. Australia used up one appeal in the first over of the second innings when Johnson made an optimistic challenge to Bowden's not out lbw decision against Smith, who was struck outside the line of off stump by a ball moving away