Australia dismissed New Zealand for 179 to take control of the first Test on Friday's second day after Cameron Green had scored a brilliant 174 not out in a defiant final-wicket partnership to drive the visitors to 383 all out.

The Black Caps lost wickets in clumps as they reeled in the face of Australia's attack with Glenn Phillips's aggressive 71 serving only to save the home side from deeper embarrassment in front of a sellout crowd at Wellington's Basin Reserve.

Australia chose not to enforce the follow-on but the wickets kept falling with skipper Tim Southee dismissing Steve Smith and Marnus Labuschagne cheaply as the shadows across the ground lengthened.

Nightwatchman Nathan Lyon was dropped by Southee in the slips off the last ball of the day and will resume on six not out alongside Usman Khawaja, who was unbeaten on five. Australia are on 13 for two, leading by 217 runs.

New Zealand, looking for only a second win over their neighbours in 24 tests this century, had started the day hoping to quickly remove the final Australian wicket but Green and Josh Hazlewood refused to yield for two hours.

All-rounder Green, who had reached the century mark for the second time in tests on the penultimate ball of day one, continued to play his shots, scoring 23 fours and five sixes in a marathon 275-ball innings.

Hazlewood contributed 22 off 62 balls at the other end as the pair combined for 116 runs before seamer Matt Henry finally winkled out the Australian paceman to claim his second test five-wicket haul with figures of 5-70.

Australia's final tally included 41 extras, which included 20 wides, but New Zealand's profligacy was not to be limited to their fielding and they were quickly reduced to 12-3.

Tom Latham played on to depart for five and two balls later Kane Williamson ran himself out for a duck after bumping into his batting partner Will Young at midwicket with Labuschagne's direct hit wrecking the stumps.

Three balls later and Rachin Ravindra was also sent back with zero runs to his name after a fine Nathan Lyon catch off the bowling of Hazlewood.

Australia skipper Pat Cummins triggered the next collapse when he had Daryl Mitchell caught behind with the final ball of one over and Mitchell Marsh ended Young's innings with the first ball of the next to leave the hosts on 29-5.

Phillips and Tom Blundell steadied the sinking ship with a partnership of 84 but Lyon (4-43) brought an end to that when he had the latter caught for 33 off an inside edge.

Two balls later, Scott Kuggeleijn became the off spinner's second victim and the home side were again on the ropes at 113-7.

Hazlewood finally found the way to evict Phillips with a short delivery the batsman top-edged to Starc in the deep and when Lyon stopped Henry's pugnacious innings on 42, the end was not long coming.

The second and final test in Christchurch begins on March 8.