Adelaide:Australia consolidated its position against New Zealand reaching 241 for three in their first innings after bowling out the visitors for 270 on the second day of the second Test on Saturday.
At close, Michael Hussey (69) and vice-captain Michael Clarke (43) were the not out batsmen as Australia still trail by 29 runs at the Adelaide Oval.
Australian fast bowler Brett Lee ran through the New Zealand tail after they could add only eight runs in the morning.
Australian skipper Ricky Ponting (79) and Hussey posted 106-runs for the third wicket after the loss of openers Matthew Hayden (24) and Simon Katich (23)for 49 runs.
Hussey and Clarke were then involved in an unbroken 86-run stand after the fall of Ponting.
Earlier, resuming at 262 for six, New Zealand innings folded after playing out just 8.3 overs with the second new ball in the morning.
Lee removed overnight batsman Brendon McCullum (30) caught by wicketkeeper Brad Haddin and then went on to claim Ian O'Brien and Chris Martin. Skipper Daniel Vettori (18) was left stranded. The pacer ended with figures of four for 66.
An out-of-form Hayden, who is appearing in his 100th Test, was run-out for 24. It was Hayden's second run-out in the last three Tests.
Vettori then removed Katich, who gave a bat-pad catch to Jesse Ryder.
Ponting and Hussey started the rescue job in contrasting styles. Ponting scored at a fast clip and stroked 13 boundaries in his 124-ball stay. He brought up his fifty with two fours in an O'Brien over and 44 of his 53 runs come from finding the rope. Hussey played patiently on the other end and hit eight boundaries in his 178-ball knock.
Ponting gave his wicket while pulling Peter Fulton and caught by O'Brien at midwicket.