Despite trailing Australia by 519 runs, New Zealand believe they can win the second Test and are drawing inspiration from India's extraordinary victory in Adelaide last year.
New Zealand reached 56 for two at the close of the second day at Adelaide Oval on Saturday. Australia, who lead the two-match series 1-0, had declared on 575 for eight.
"We take a lot of heart from what India did here last year," spinner Daniel Vettori told a news conference.
"If we can get a score of close to 500 and then make Australia bat again under some pressure, then we have a really good chance of forcing a result.
"Obviously if we don't bat well over the next two days we have no chance, but we are confident of doing it," said Vettori who took five for 152 in Australia's innings.
Australia made 556 in their first innings in the Adelaide Test against India a year ago. India scored 523, then bowled Australia out for 196 and reached 233 for six to win by four wickets.
Australia batsman Darren Lehmann, who hit 81 on Saturday, said the home side were determined to avoid a repeat of their performance in Adelaide a year ago.
"Twelve months ago we let slip a really good chance against India," Lehmann said.
"We came together this morning and really spoke about getting a big score and not letting the other side back into the game.
"I think we achieved that today. We were able to declare and then the bowlers finished it off. So it was a really good day for us."
South Australia captain Lehmann's half-century helped fend off pressure for his Test place from Simon Katich, but Lehmann admitted he was disappointed not to reach three figures.
"You'd love to score a century in front of your home crowd, so that was very disappointing for me today personally," the 34-year-old Lehmann said.
Vettori and Lehmann said they expected the wicket to favour spinners on the fourth and fifth days.
