Mitchell Johnson grabbed four wickets but missed the perfect chance for a hat-trick as New Zealand were bundled out for a disappointing 156 shortly before tea. The excellent efforts of Johnson and his fast-bowling colleagues gave Australia a first-innings lead of 58 and an early tea was taken after Johnson finished with a career-best 4 for 30.
Daniel Flynn, Ross Taylor and Jesse Ryder all made starts but the lack of fight from New Zealand's lower order was remarkable. The final four wickets fell for 13 and none of the last five batsmen reached double-figures as Flynn was stranded on 39 having played an admirably watchful innings.
New Zealand went to lunch at 4 for 108 but with Taylor looking strong and Flynn solid, they still had a chance of overhauling Australia's 214. But the downhill spiral began in the first over after the break when Taylor, who had failed to add to his 40, was caught on the crease by a Brett Lee inswinger and was lbw to a ball that would have clipped leg stump.
Grant Elliott survived for a while but did little else and lost his leg bail when Shane Watson nipped one back between bat and pad. From there it was a steady procession of wickets as Johnson collected three in six balls, beginning with Daniel Vettori, who was deceived by a slightly slower and marginally shorter ball and prodded the simplest of catches to Andrew Symonds at point.
Symonds gathered another from the last ball of the same over when Tim Southee also nudged one to point and, when Iain O'Brien was caught at slip from the first ball of the next Johnson over, the bowler was on a hat-trick. He will never have a better chance of getting three from three: he had five balls to attack the stumps of Chris Martin, who has 23 Test ducks and an average of 2.38.
Martin couldn't put bat on ball but neither could Johnson bowl a straight one and it was left to Stuart Clark to finish the innings in the next over when he bowled Martin for 1. An early tea was taken to complete a terrific two sessions for Australia, whose gamble on four fast bowlers had worked, although it had also severely slowed the over-rate and they got through only 45 overs in nearly four hours.
It was fitting that Clark finished the job after he also started the trouble by picking up Aaron Redmond from the first ball of the day. Redmond tentatively nudged at a short-of-a-length delivery he should have left, and edged to slip. Lee soon outsmarted Jamie How, who was bowled reaching at a fullish delivery after successfully driving a similar ball for four earlier in the over.
But Ryder and Taylor kept up an attacking frame of mind and New Zealand added 4 for 101 in the eventful first session. Australian fans were given an enjoyable first taste of Ryder's ability as he struck his way to 30 before gifting his wicket to Watson by edging behind when he tried to cut a wide ball with his feet rooted to the crease.
It was a disappointing end for Ryder, who had hit five fours including a cracking back-foot drive off Lee. His stay was action-packed; he suffered a blow to the groin from Lee so painful that his knees buckled almost immediately and he was dropped on 11 when Brad Haddin dived and grassed a chance he should have left for first slip.
After Ryder departed Taylor kept the aggressive intent, slashing boundaries through the off side with equal parts bravado and good fortune, until he became Lee's 299th Test victim. Lee, Clark and Watson picked up two wickets each and, combined with Johnson's four, it was a strong performance on a pitch that had lost some of its spice.