The Black Caps have transformed the contest in the past three sessions, turning a 94-run first-innings deficit into a defendable fourth-innings total.
Rachin Ravindra (82) and Daryl Mitchell (58) made half-centuries at Hagley Oval on Sunday, joining similar knocks from Tom Latham (73) and Kane Williamson (51) from Saturday.
Their output has New Zealand at 6-345 at tea, putting the Test on their terms and the Black Caps within reach of a first home Test win over their arch-rivals in 31 years.
New Zealand's Daryl Mitchell (left) and Rachin Ravindra take a single against Australia. (AP PHOTO)
The lead means Australia will need to mount their biggest chase in New Zealand if they are to claim a 2-0 series win.
And New Zealand aren't done yet, with big-hitters Glenn Phillips (16) and Scott Kuggeleijn (38) still at the crease, with in-form Matt Henry to come.
On day three, Australia bowled without penetration in Christchurch, where the wicket has been improving session by session through the Test.
Pat Cummins offered eight of the Aussie XI the chance to bowl, but only the skipper impressed with 3-49.
Ravindra, who made 82, ticked the Kiwi lead into triple figures by dancing down the wicket and slogging Nathan Lyon to the long-on boundary.
The 24-year-old increased his scoring rate after beginning the morning on 11 off 36 deliveries, tallying his second half-century of the series with a straight drive off Mitch Marsh.
Ravindra has faced criticism for two ordinary first-innings dismissals this series, but in both Tests has rebounded with second-innings 50s.
Tom Latham brings up his 28th Test half-century here at his home ground in Ōtautahi / Christchurch �— TVNZ+ (@TVNZ) @BLACKCAPS v Australia: 2nd Test | LIVE on DUKE and TVNZ+ pic.twitter.com/wV8Wm23r37March 9, 2024
He lost Latham in the only dismissal of the first session when the opener was caught behind off Cummins.
Mitchell scored 58 of a 123-run stand with Ravindra, a partnership that was only ended when Josh Hazlewood took the new ball.
The Aussie attack took 3-28 from that point, with Cummins removing Ravindra, who tickled a short ball to Alex Carey.
Cam Green also removed Tom Blundell (9) with a wide, slow ball that Marnus Labuschagne dived well to take.
Labuschagne then lowered his colours by putting down a difficult slips catch with Kuggeleijn on two, as New Zealand turned the screws.
Kuggeleijn and Phillips have put on 49 runs, making Australia's eventual fourth-innings ask all the more difficult.
The Black Caps haven't tasted any Test success over their trans-Tasman rival since 2011 in Hobart, and not at home since an Auckland win in 1993.
Their loss at Wellington's Basin Reserve last week was Australia's 10th win in 11 unbeaten matches on Kiwi soil.