Australia set 241 to win

Lunch New Zealand 150 and 226 (Taylor 56, Lyon 3-25, Pattinson 3-54 , Siddle 3-66) lead Australia 136 by 240 runs

Peter Siddle removed Kane Williamson in the day's first over © AFP

Australia require 241 to defeat New Zealand after seven wickets fell on a third consecutive morning of batting shambles in the second Test in Hobart.

The visitors slipped from 3 for 139 overnight to 9 for 203, but their lead was given an unlikely top-up by the last pair of debutant Trent Boult and Chris Martin. Boult struck four boundaries and Martin survived nine balls before his partner swung Nathan Lyon into the deep.

Batting may get easier in the afternoon, but forecast rain may allow New Zealand the chance to bowl early on day four. No fewer than 19 wickets have fallen in the three pre-lunch sessions of the Test so far.

Lyon's three wickets meant he had wrapped up the New Zealand tail for the third time in four innings, but it was Peter Siddle and James Pattinson who did the bulk of the heavy lifting for the hosts. Siddle struck in the first over of the morning and persisted admirably throughout, while Pattinson's swing and speed accounted for Ross Taylor, whose 56 was the highest score of the match, and the dogged Dean Brownlie.

Ricky Ponting was late to the ground on the third morning, having received the news that his grandmother had died overnight. Team-mates wore black armbands onto the field in recognition, and were soon patting Ponting on the back as he clung onto a sharp chance in the day's first over. Siddle moved the ball fractionally away on a perfect length, and Kane Williamson's feet did not move swiftly enough to avoid the edge.

Next man Brownlie had been Australia's chief batting tormentor in this series, and for 32 runs he and Taylor hung tough. The ball continued to seam and swing, Siddle and Pattinson persistent and pacey, but in the absence of a wicket Michael Clarke was forced to make a change. Starc has not improved on his first-day bowling at the Gabba, but it was his short ball that disrupted the visitors' progress by clouting Brownlie on the left wrist as he ducked. Magic spray was called for, and Brownlie's touch was affected.

Taylor watched it all from the other end, and next over he did not get far enough forward to negate Pattinson's away swing. As in Brisbane he edged, this time offering a chance that Clarke held adeptly to his right. Pattinson with in fine rhythm in his second spell of the session, and a bouncer grazed Brownlie's ginger left glove on the way through to Brad Haddin.

Reece Young fell victim to Siddle's nip-backer, reward for a wonderfully relentless display, and Tim Southee was unable to contain himself against Lyon. First ball sailed over Michael Hussey's head for six, second skimmed beyond mid-off for four, and the third picked out Hussey in a foolhardy attempt to repeat the first. Doug Bracewell swung rashly two balls later to be bowled.

Martin was very nearly lbw to Lyon before he had scored, but evaded the appeal and allowed Boult to swing for the fences. He did so with success until he picked out Hussey in much the same manner as Southee had done.