Trent Boult conjured a masterful final-over hat-trick as New Zealand restricted Australia to 243 for nine at Lord's.
Usman Khawaja's crucial 88 stabilised Australia's chances of a seventh win in eight World Cup matches, before Kiwi seamer Boult bagged his fine treble.
New Zealand ripped through Australia's top order, with Aaron Finch's side slipping to 92 for five in the 22nd over.
David Warner, Finch, Steve Smith and Glenn Maxwell all failed to make a dent on the scoreboard, with Lockie Ferguson and Jimmy Neesham taking two wickets apiece.
Khawaja propped up Australia's innings however, with Alex Carey posting an equally-important 71.
There would be no final-over flourish from Australia though, as Boult produced the second hat-trick of this World Cup.
First the 29-year-old castled Khawaja, then he clean bowled Mitchell Starc too.
And with the hat-trick on the line, Boult trapped Jason Behrendorff leg before, in a fine example of death bowling.
Hat-trick aside, New Zealand will feel they let Australia off the hook though after such a punishing start.
Another testing pitch would doubtless cause the Black Caps problems at the crease too, teeing up an intriguing run chase.
