Skipper Steve Smith and Usman Khawaja scored half centuries to put Australia in a commanding position against New Zealand at stumps on the opening day of the first Test at Basin Reserve in Wellington on Friday.
After being asked to bat first, New Zealand were bundled out for 183 in their first innings, with Corey Anderson and Mark Craig contributing 38 and unbeaten 41 respectively.
Brendon McCullum, who was playing his 100th Test and last international series, scored a duck.
Josh Hazlewood was the pick of the bowlers, bagging four wickets for the visitors.
Peter Siddle and Nathan Lyon claimed three wickets each.
At stumps, Australia were at 147-3 and are trailing by just 36 runs against New Zealand, with Khawaja (57) and Adam Voges (seven) at the crease.
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Earlier, Australia suffered a 1-2 defeat in the three-match Chappell- Hadlee series against New Zealand following their 55-run defeat in the final ODI at Seddon Park in Hamilton.
