The home side were bowled out for 157 and then struggled to 187-5, still 115 behind, before bad light ended play yesterday.
Left-armer Doug Bollinger was the pick of Australia’s attack, taking 5-28 in New Zealand’s first innings.
He then removed BJ Watling and Peter Ingram when they batted again, with Nathan Hauritz also picking up two wickets, including Tim McIntosh for 83.
It was harrowing viewing for New Zealand coach Mark Greatbatch as his side lost their last six first-innings wickets in just 12.1 overs at the start of play.
Skipper Daniel Vettori was caught in the slips off Ryan Harris for 46 from the fifth ball of the day and after a bright and breezy 24 from Brendon McCullum, the last five wickets went down for only nine runs.
McCullum, who was reprieved on nought by the TV umpire, who overruled a leg-before decision because Harris had overstepped, hit a six and three fours before he was caught off Bollinger.
Martin Guptill edged to the `keeper two balls later and departed for 30 and Daryl Tuffey, Brent Arnel and Tim Southee were swept away in the space of four deliveries.
Replays suggested the ball had made no contact with Southee’s bat after the tail-ender had asked for a review.
The decision stood, prompting Vettori to conduct what Greatbatch described as a “casual chat” with match referee Javagal Srinath during the break.
“It’s fair to say the system at the moment, it’s a little inconsistent,” said Greatbatch.
“We just asked the question whether the system in place at the moment is consistent. The match referee said ‘yes’, so we’ll get on with it.”
Ricky Ponting had no hesitation in asking the Kiwis to bat again, and they needed to show far greater resolve second time around to avoid total humiliation.
Watling and McIntosh saw off the new ball in a first wicket stand of 70, but when the former was trapped lbw for 33 to Bollinger, the review system was again under the spotlight.
New Zealand were unhappy with with some of the review decisions
“I’m not sure whether the technology they’ve got there is good enough as far as frames per second,” said Greatbatch after an inconclusive replay saw the umpires again rule in the tourists’ favour.
