Australia were marching towards setting a big target for New Zealand, after going to lunch on day of the third test at 172/1 and with a lead of 375 runs.
David Warner was unbeaten on 89 off 130 balls, with Joe Burns (40) the only man to perish in the morning session at the Sydney Cricket Ground.
Burns was trapped leg before wicket to a Todd Astle wrong'un, despite it originally being given not out on field by umpire Aleem Dar.
The dismissal capped off a frustrating summer for Queenslander Burns, who narrowly missed out on a ton in his home test in Brisbane and has not gone near three figures since.
But it was a still a dominant session for Australia, with Marnus Labuschagne not out on 36, after he should have been caught and bowled by Astle on four.
Burns and Warner combined for a 107-run opening stand, upping the ante, after being more cautious on Sunday evening.
Burns whacked two sixes from the Blackcaps spinners, while Warner was busy in hitting 66 of his runs on Monday off just 74 balls.
He drove tremendously, as he had all season, and was on the verge of his third century for the test summer.
With the trans-Tasman trophy already wrapped up, Australia were on the verge of securing just their 10th whitewash of a full home summer with a win in Sydney.
New Zealand are yet to score more than 260 in five innings this series, while the SCG wicket looks set to offer plenty of assistance to Aussie spinner Nathan Lyon.
No team has successfully chased down more than 418 in test cricket.