New Zealand skipper Daniel Vettori and fast bowler Tim Southee claimed four wickets each to bundle out Australia for 231 on day one of the second Test at Hamilton's Seddon Park.
Australian skipper Ricky Ponting's decision to bat first proved disastrous, as Vettori celebrated his 100th Test cap with four for 36 and a spectacular run out.
However, it was Southee, who bounced back from a poor, wicketless match in Wellington, to claim four for 61 and make early inroads into the Australian batting line-up, The Sydney Morning Herald reports.
Southee claimed the key wickets of Australian opener Shane Watson (12), Michael Hussey (22), Marcus North (9) and Brad Haddin (12) as he relished his home turf, bowling full and with venom.
Watson mistimed a pull shot in the eighth over and was caught at mid-on, while Ponting pushed a ball to mid-off and set off for a single, but failed to beat a throw to the non-striker's end by Vettori.
Australian vice-captain Michael Clarke (28) played an ugly slog off spinner Jeetan Patel to long-on.
Opener Simon Katich top-scored with 88 in his 50th Test, but his dismissal triggered a collapse.
After a tough start, Australia returned from the tea break struggling at 180 for the loss of five wickets and an incredible lower-order collapse due to stupendous bowling from Vettori handed New Zealand the final five wickets at a cost of only 51 runs.
Vettori polished off the tail, taking three for 21 off 8.3 overs in his post-tea spell.
In reply to the visitor's first innings total, New Zealand ended the day on 19 for one. Opener Tim McIntosh (four), bowled by Australian fast bowler Doug Bollinger, was the only late blip for the hosts.
Bradley-John Watling and Mathew Sinclair, who negotiated 13 overs before the close of play, will resume on Day Two.