Saturday's test is effectively a dead rubber as New Zealand retained the Bledisloe Cup played for annually between the All Blacks and Wallabies after beating Australia twice during the Rugby Championship.
But Hansen said his team was determined to maintain its standards after a win over South Africa in what has been counted as one of the best tests in rugby history.
"This is a challenge this team needs and will help define the progress we are making," Hansen said. "If we don't attempt to improve our performance from our last outing we are vulnerable to being overtaken."
Hansen said he was confident of Ben Smith's ability to take over from Conrad Smith at center, though he has played all of his tests this season on the wing. He said Smith had established himself as a key member of the All Blacks backline and had already demonstrated his adaptability.
"We wanted him to really fill the jersey out and be comfortable in it," Hansen said. "He's done that and was probably the back of the championship, if not the player of the championship. He is in a rich vein of form."
Aaron Cruden will again start at flyhalf in the absence of Dan Carter, who has a shoulder injury.
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New Zealand: Israel Dagg, Cory Jane, Ben Smith, Ma'a Nonu, Julian Savea, Aaron Cruden, Aaron Smith; Kieran Read, Richie McCaw (captain), Liam Messam, Sam Whitelock, Jeremy Thrush, Charlie Faumuina, Keven Mealamu, Tony Woodcock. Reserves: Dane Coles, Wyatt Crockett, Ben Franks, Brodie Retallick, Sam Cane, Tawera Kerr-Barlow, Beauden Barrett, Tom Taylor.