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Australia are 1-0 up in their three-Test series against New Zealand after cruising to a 296-run victory at Optus Stadium inside four days.

Australia have landed an emphatic blow on New Zealand and taken a 1-0 lead in the Trans-Tasman Trophy with a 296-run flogging of the tourists in Perth.

Reduced to just three front-line bowlers through injury to Josh Hazlewood, Australia rolled New Zealand for just 171 on Sunday chasing 468 for victory.

It helped complete a win inside four days against the world's No.2 team, as their record in Australia slumped to just one win in their last 23 Tests.

It also set up a mammoth task for New Zealand to recover, with Boxing Day less than a fortnight away and Sydney immediately following.

"Any time you win your team takes confidence from it," Australia captain Tim Paine said.

"It was a pretty solid performance, particularly given we were a bowler down for two innings and not having an allrounder in our side.

"But it means nothing come Boxing Day in Melbourne. We need to start again. We know they're a good side. We know they've got lots of good players."

After Marnus Labuschagne helped set up Australia's advantage with 144 in their first-innings 416, Mitchell Starc and Nathan Lyon did the job with the ball.

Starc claimed 4-45 to go with his first-innings 5-52, taking his record with the pink ball to 42 scalps in just seven day-night Tests.

He got the key wicket of Ross Taylor on Sunday, removing the star batsman when he under-edged on through to Paine behind the stumps.

Lyon, meanwhile, finished with 4-63, getting plenty of turn out of a wicket with cracks offering plenty of movement for both the quicks and spinners.

His first ball on Sunday was arguably his best, ripping and turning out of the footmarks to catch Kane Williamson's gloves and go straight to short leg on 14.

He later had Tom Latham lbw for 22, removed Henry Nicholls (21) off the final ball before dinner at bat pad and nicked off Tim Southee for four to finish the match.

In a poor Sunday for the Black Caps, only BJ Watling reached 40 as one of the world's best batting line-ups succumbed for just 337 runs across their two innings.

"It's not so much focusing on bouncing back, it's just focusing on playing better in all areas," captain Williamson said.

"To be able to move past it and learn from all parts."

The only concern for Australia will be the way they handled New Zealand's short-pitch bowling ahead of the next two Tests.

While Sydney and Melbourne's pitches will likely offer far less assistance to the quicks, each of Australia's top six fell to shorter balls in the second innings.

Four of those were caught on the pull shot with fielders intentionally set for catches around the bat and in the deep as Neil Wagner (3-59) and Southee (5-69) troubled them.

Matthew Wade, in particular, copped several body blows on both the third night and fourth morning from Wagner, before he too fell on the pull in Australia's second-innings 217.

But with ball in hand the hosts' bowlers had just as much fun.

Starc had opener Jeet Raval edging for one while assisted by the extra bounce, and all but sealed the deal when Watling tickled one down the legside in the final session.

Pat Cummins also produced two brutish deliveries to remove Colin de Grandhomme (33) and Mitchell Santner (0), as they reared up at them.