CHRISTCHURCH, NEW ZEALAND: New Zealand cleaned out the top four Australian batsmen on Sunday to leave the tourists on 77-4 and facing an uphill task in their chase of 279 to win the second Test in Christchurch.

The hosts set a demanding target for an Australian side struggling for runs on a ground where the highest successful fourth innings is 285-8, set by New Zealand against Sri Lanka last year.

Steve Smith, Marnus Labuschagne, Usman Khawaja and Cameron Green were all swiftly sent back to the Hagley Oval pavilion by New Zealand's seamers.

Matt Henry had figures of 2-37 with debutant Ben Sears on 2-22. Australia still need 202 runs.

At the close of play on day three, Mitchell Marsh was not-out 27 with Travis Head unbeaten on 17.

With two days remaining and no rain forecast, a draw is out of the equation as New Zealand battle for their first win over Australia since 2011.

The tourists are looking to sweep the series after dominating the first Test.

With the pitch flattening out and not providing as much movement as it did over the first two days, New Zealand were well placed when they went to tea at 345-6 and eyeing an imposing 300-plus target.

But momentum swung back Australia's way as the New Zealand tail added just 27 and the last three wickets contributed only one run.

At the top of the order, there were half-centuries from Tom Latham, Kane Williamson, Rachin Ravindra and Daryl Mitchell, but no one was able to push on to three figures.

New Zealand resumed the day at 134-2 and quickly lost Latham, who added eight to his overnight 65 before he was caught behind off Pat Cummins.