The Kiwis, trailing 1-0 in the series, struggled to build a defendable total to present Australia in the fourth innings after another fast-paced day's cricket of 13 wickets before 42,372 fans.
At the close, the Black Caps were finding batting difficult under lights and were 116 for five with a result looming on Sunday's third day in the scheduled five-day Test.
New Zealand had lost their top batsmen and still at the crease were B.J. Watling on seven with debutant Mitchell Santner not out 13.
Hazlewood removed both openers with mesmerising ball movement under lights. Martin Guptill sliced to Mitch Marsh in the gully for 17 and Tom Latham was tempted by a wider delivery and was caught behind for 10.
Hazlewood had Kane Williamson dropped on one by Adam Voges in the slips but the star Kiwi batsman soon feathered a catch to Nevill off Mitch Marsh for nine to complete a low-scoring match.
Captain Brendon McCullum followed for 20, leg before wicket to Marsh and Perth Test double century-maker Ross Taylor fell the same way to Hazlewood for 32.
Nathan Lyon survived a review in which 'Hot Spot' revealed a mark on the back of his bat before he had scored.
The review was churned over for minutes before the TV umpire Nigel Llong decided there was not enough to go on despite the Hot Spot evidence to give Lyon out, caught off spinner Santner, with Australia reeling at 118 for eight and trailing the Kiwis by 84 runs.
Lyon was eventually out for 34 as the Australians hit back to take an innings lead with incapacitated Mitchell Starc smashing two massive sixes off spinner Mark Craig.
Nevill was the hero and was the last man out for his highest Test score of 66 leaving the hobbling Starc unbeaten on 24 which included two sixes and three fours.
Doug Bracewell finished his side's best bowler with three for 18 off 12.1 overs.
It was rough justice for the Kiwis, who have been on the receiving end of some controversial umpiring decisions.
Australia were in dire trouble at 116 for eight at tea after a rampant Kiwi bowling performance in the first session.
The Kiwis had the Australians well on the back foot with Peter Siddle out four balls later in the same Craig over and then Hazlewood was bowled by Santner for four in the final over before tea.
Just 62 runs were scored by Australia for the loss of six wickets in the first session off 29.5 overs.
Smith, who raised his fighting half-century off 108 balls, lost three batting partners before he fell.
Adam Voges edged to Guptill at third slip for 13 and Shaun Marsh, needing a big score to justify his Test recall, was run out for two by a brilliant piece of fielding from Kiwi skipper Brendon McCullum at mid-off.
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