New Zealand need a record 468 runs in their fourth innings to win the first test, after Australia declared at 217 for nine in the opening session on the fourth day.
Tireless quicks Tim Southee (5-69) and Neil Wagner (3-59) shared the spoils, as Australia lost eight wickets for 86 runs on a Perth Stadium pitch starting to play tricks.
Opener Joe Burns top-scored for Australia with 53, while Marnus Labuschagne made 50 ending his streak of three straight test centuries.
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