The first part of the day went well for New Zealand as Dan Vettori and Dean Brownlie continued their fighting sixth wicket stand to lift the innings to respectability.
Having put on 158, a record against Australia, eclipsing the old mark of 126 by Brendon McCullum and Vettori at Wellington two seasons ago, Vettori ran himself out attempting a sharp single to mid off, and beaten by Mike Hussey's direct throw.
Vettori's 96, full of vigorous pulls, sweeps and other inventive strokes, once more demonstrated his huge value to the New Zealand cause.
He helped steer the rookie Brownlie, in his second test, past the half century and the Perth-born Canterbury batsman, who finished unbeaten on 73, clearly grew in confidence as his innings progressed from a wobbly start the previous day.
The target had been about 300, which New Zealand viewed as a competitive total, and it could have been better, but for the last five wickets falling for 41 runs.
Offspinner Nathan Lyon was the pick of the Australian attack, nabbing four for 69 and getting healthy turn from the pitch.
Where Australia let themselves down was their fielding, which was uncharacteristically dreadful.
New Zealand hit the ground running when Australia's first innings began.
Tim Southee had debutant David Warner caught behind with his first ball; a sharp Martin Guptill catch at gully accounted for Phil Hughes and when Usman Khawaja was run out first ball after tea by a terrific piece of work from Kane Williamson New Zealand were right in the contest.
Had Ricky Ponting been run out before he'd scored - he was sent back and lost his bat in the process, but Brendon McCullum's throw was wide - Australia would have been on the run.
Instead Ponting, 36 and with his career in the balance got better as he went on and by stumps had reached 67.
Clarke too had a huge slice of luck, playing a ball from seamer Doug Bracewell onto his stumps, but getting a second life when umpire Rauf sought a check on whether Bracewell had overstepped in his delivery stride.
He had and the skipper lived to fight on and was on 28 at the end.
Bracewell did the same thing against Zimbabwe in Bulawayo last month, costing him a wicket that day.
It was his fifth no ball of the day and that problem needs sorting out smartly.
It could yet be massively costly for New Zealand.
New Zealand
First innings
B McCullum c Warner b Starc 34
M Guptill c Haddin b Siddle 13
K Williamson c Khawaja b Lyon 19
R Taylor b Pattinson 14
J Ryder c Warner b Starc 6
D Brownlie not out 77
D Vettori run out (Hussey) 96
R Young c Clarke b Siddle 2
D Bracewell c Clarke b Lyon 0
T Southee c Hussey b Lyon 17
C Martin b Lyon 1
Extras (9b, 1lb, 3wd, 3nb) 16
Total (82.5 overs) 295
Fall: 44 (Guptill), 56 (McCullum), 78 (Williamson), 93 (Taylor), 96 (Ryder), 254 (Vettori), 256 (Young), 259 (Bracewell), 290 (Southee), 295 (Martin).
Bowing: J Pattinson 15-1-64-1 (2w, 2nb), P Siddle 24-8-57-2 (1w, 1nb), M Starc 20-1-90-2, N Lyon 21.5-1-69-4, M Hussey 2-0-5-0.
Australia
First Innings
D Warner c Young b Southee 3
P Hughes c Guptill b Martin 10
U Khawaja run out (Williamson) 38
R Ponting not out 67
M Clarke not out 28
Extras (1lb, 1wd, 6nb) 8
Total (for 3 wkts, 46 overs) 154
Fall: 3 (Warner), 25 (Hughes), 91 (Khawaja).
Bowing: D Vettori 9-2-23-0, T Southee 12-5-31-1, C Martin 12-2-38-1 (1w), D Bracewell 10-2-50-0 (5nb), M Guptill 1-0-6-0 (1nb), D Brownlie 2-0-5-0.
