Nathan Lyon picked up his 17th five-wicket haul in Tests as New Zealand were bundled out for 251 in the first innings on day three of the Sydney Test.
Australia then fattened their lead to 243 runs with David Warner (23*) and Joe Burns (16*) ending the day with 40/0 on the board. In the 16 overs they batted, both openers looked unruffled as the visiting bowlers failed to create any breakthrough.
Earlier in the day, New Zealand, who had begun the first session on 63/0 lost Tom Blundell (34) early with Lyon setting him up to get his first wicket of the match.
Skipper Tom Latham then combined with Jeet Raval to share a 49-run stand for the second wicket and just when it looked like the visitors had stabilised the innings, both departed in quick succession to hand Australia the advantage. While Raval was trapped in front by Lyon on 31 and used up a review in vain, Pat Cummins dismissed Latham on 49, who gave a regulation catch to Mitchell Starc at mid-on.
Ross Taylor, who looked good initially and counterattacked with boundaries until the lunch break was eventually picked up by Cummins for 22 at the beginning of the second session. Australia lost their second review appealing for BJ Watling's wicket but picked him up cheaply soon after. Colin de Grandhomme (20) gave debutant Glenn Phillips some company and stitched a 32-run sixth-wicket stand before being run-out at the striker's end.
Seven out of New Zealand's top eight batsmen crossed double figures, but with the exception of Phillips, none of them crossed fifty.
Phillips, who was riding on beginner's luck was dropped twice on his way to his maiden half-century, both times by Lyon off his own bowling. He was also dismissed by James Pattinson off a no-ball when he was on 28. His luck finally ran out after he brought up his fifty, with Cummins foxing him with an inswinger.
Lyon then ensured that the final three wickets did not cause any damage as they added only 16 more runs to New Zealand's modest total.
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