Gillespie took two wickets after lunch to ruin the Kiwi fightback

Australia took complete control of the second Test, bowling New Zealand out for 251 for a lead of 324 runs.

But the home side declined to enforce the follow-on, and at the end of day three they were 57-0 with Matthew Hayden 21 and Justin Langer 31.

New Zealand captain Stephen Fleming made an elegant 83 but his was the first of five wickets to fall after lunch, including Nathan Astle for 52.

Pacemen Glenn McGrath (4-66) and Jason Gillespie (3-37) shared seven wickets.

Something can be achieved if there are a couple of heroes on our side Stephen Fleming Day three reaction

New Zealand resumed on 56-2, adding 24 before, Michael Kasprowicz had nightwatchman Paul Wiseman lbw for 1.

McGrath and Gillespie each took two wickets in the afternoon session before world record-holder Shane Warne claimed his 550th victim.

McGrath triggered the collapse when he had Fleming caught behind after the left-hander shared a 73-run partnership for the fourth wicket with Nathan Astle.

Astle was deceived by a slower ball from McGrath and popped a catch to Langer at short mid-wicket at 178 for five.

Hayden passed 1000 runs in a year for the fourth time

Gillespie struck twice in five balls, removing first Test century-maker Jacob Oram caught behind for 12 and wicket-keeper Brendon McCullum lbw for 10.

Leg-spinner Warne then trapped James Franklin in front for seven.

Middle order batsman Scott Styris, battling a middle ear complaint which affected his balance and sight, joined Daniel Vettori and they went to tea at 216-8.

But they were only delaying the inevitable, which came in the seventh over with the second new ball.

Australia really are just a class apart From M Have your say on TMS

Vettori was lbw to McGrath for 20 and Styris was McGrath's fourth victim after belting 28, including four fours and one six.

After Australia decided to build their lead to unassailable proportions, Hayden soon gained the 10 runs he needed to become the first player to score 1,000 Test runs in four consecutive calendar years.

Australia: Ricky Ponting (cpt), Justin Langer, Matthew Hayden, Damien Martyn, Darren Lehmann, Michael Clarke, Adam Gilchrist (wkt), Shane Warne, Jason Gillespie, Michael Kasprowicz, Glenn McGrath. (12th man: Brett Lee).