New Zealand require 257 more runs to win with seven wickets in hand.

Nightwatchman Nathan Lyon top-scored in Australia's second innings, falling nine short of his first Test fifty.

Cameron Green continued his good form with 34, but all-rounder Phillips spun his way to a five-wicket haul and was on a hat-trick after removing Travis Head for 29 and Mitchell Marsh with the next ball.

Phillips finished with 5-45 as Australia were all out for 164.

The Black Caps' run-chase started poorly, with Lyon dismissing Tom Latham and Kane Williamson for single-digit scores, before part-time spinner Head removed Will Young for 15 as New Zealand fell to 59-3.

Ravindra, who scored 240 in the first Test against South Africa last month, defied Australia late on with a series of aggressive strokes in his 94-ball knock.

Lyon said it will be crucial to quickly remove the 24-year-old, who scored three centuries at last year's 50-over World Cup, early on day four.

"Rachin seems like a really good player," Lyon said. "This is the first time I've bowled to him. I watched a lot of him during the World Cup and he's going to be a superstar.

"Credit where it's due, he's played very well here. But I know if we can put pressure on them and challenge their defence for long periods of time, hopefully we can crack them."