Australia seized control of the opening Test Friday after a miserable day for New Zealand left the hosts 217 runs adrift in Wellington and with a mountain to climb to stay in the match.

The visitors finished on 13-2 in their second innings with nightwatchman Nathan Lyon not out six and opener Usman Khawaja on five after Steve Smith and Marnus Labuschagne departed cheaply.

Tim Southee bowled Smith with his third ball, then had the out-of-form Labuschagne caught behind by Tom Blundell.

However, Southee dropped Lyon in the slips late on from Matt Henry to cap a frustrating day for New Zealand at the Basin Reserve.

Cameron Green earlier smashed an unbeaten 174 to claim only his second Test century, backing up the 114 he scored in India a year ago, as Australia raced to an imposing first-innings 383 before bowling out New Zealand for 179.

Green, 24, lit up the morning session in a superb 116-run last-wicket partnership with plucky Josh Hazlewood, who survived 62 balls for his 22.

"It was good to be at the other end and watch that sort of innings," Hazlewood said of Green's performance.

"For his career, this could be huge. To get his second hundred for Australia was outstanding."

The Australian bowlers struck early, dismissing Tom Latham (5) before Kane Williamson and Rachin Ravindra fell for ducks within the space of five balls to leave them tottering at 12-3.

Glenn Phillips offered the most resistance before he was dismissed for 71, caught by Mitchell Starc off Hazlewood. Australia then quickly picked off New Zealand's tail.

Phillips' sixth-wicket partnership of 84 with Tom Blundell (33) was the meagre highlight.

"The pitch was moving around a little bit and they were hitting really good areas so it was up to us to get the pressure back up on them," said Phillips.

"Obviously the way Green played with Hazlewood, they did really well and put up a massive partnership. It's not ideal for us but that's what Test cricket is like."

The Black Caps never recovered after the horror start by their top order.

Latham played on in the fourth over, unable to deal with the pace of Starc. It got worse when Williamson and Ravindra were out soon after.

Williamson was run out after a comical collision with opener Will Young midway down the wicket, with Labuschagne's throw pitch-perfect.

More New Zealand misery followed three balls later when Ravindra was caught by Lyon at point.

Daryl Mitchell managed 11 before being taken behind by wicketkeeper Alex Carey off Cummins.

Young followed next ball when he nicked Mitchell Marsh, with Carey again collecting to leave New Zealand struggling at 29-5 before Blundell and Phillips briefly steadied the ship.

Phillips was finally removed when he pulled a Hazlewood bouncer to Starc at deep backward square. Spin king Lyon ended with 4-43.

Green had started the morning by picking up where he left off, adding to his overnight 103 by clobbering a six to push the visitors past 300 after resuming on 279-2.

The 24-year-old piled on the misery for the Black Caps bowlers with another six to reach 150.

His innings included 23 fours and five sixes, rescuing the Australians after their top-order batsmen struggled in their first innings on Thursday.

Scoreboard

Australia 1st innings 383 (C. Green 174 not out, M. Marsh 40; M. Henry 5-70)

Australia 2nd innings

1. Smith b Southee                    0
2. Khawaja not out                    5
3. Labuschagne c Blundell b Southee   2
4. Lyon not out                       6

Extras                                0

Total (for two wickets, 8 overs)     13

Fall of wickets: 1-0 (Smith), 2-4 (Labuschagne)

Bowling: Southee 4-2-5-2, Henry 4-1-8-0

New Zealand 1st innings

1. Latham b Starc                      5
2. Young c Carey b Marsh               9
3. Williamson run out                  0
4. Ravindra C Lyon b Hazlewood         0
5. Mitchell c Carey b Cummins         11
6. Blundell c Head b Lyon             33
7. Phillips c Starc b Hazlewood       71
8. Kuggeleijn c Green b Lyon           0
9. Henry c Labuschagne b Lyon         42
10. Southee c Head b Lyon               1
11. O'Rourke not out                    0

Extras (b1, lb3, nb2, w1)              7

Total (all out, 43.1 overs)          179

Fall of wickets: 1-12 (Latham), 2-12 (Williamson), 3-12 (Ravindra), 4-29 (Mitchell), 5-29 (Young), 6-113 (Blundell), 7-113 (Kuggeleijn), 8-161 (Phillips), 9-162 (Southee), 10-179 Henry

Bowling: Starc 9-4-34-1 (wd1), Hazlewood 12-0-55-2, Cummins 10-2-33-1, Marsh 4-0-10-1 (nb2), Lyon 8.1-1-43-4

Toss: New Zealand

Umpires: Michael Gough (ENG), Marais Erasmus (RSA)

TV umpire: Nitin Menon (IND)

Match referee: Ranjan Madugalle (SRI)