Adelaide, Nov 28 (AFP/PTI) New Zealand captured the big wicket of skipper Steve Smith to have Australia scrambling for survival in an all-action day-night Adelaide Test today.

The Kiwis snared Smith's wicket nearing tea on the second day when he charged off-spinner Mark Craig only to inside edge a high catch to wicketkeeper B.J. Watling to end the skipper's lone vigil as wickets tumbled around him.

The Kiwis, defending their modest first innings total of 202, had the Australians well on the back foot with Peter Siddle out four balls later in the same Craig over.

The Australians also lost the wicket of Josh Hazlewood, bowled off-stump by debutant left-arm spinner Mitchell Santner for four to leave the home side's innings in ruins.

At tea, Australia were teetering at 116 for eight with Peter Nevill on 17 after narrowly avoiding a run out.

The Black Caps destroyed the Australian innings with effective swing and then spin to keep the pressure firmly on the home side's scoring.

Just 62 runs were scored for the loss of six wickets in the first session off 29.5 overs in an astonishing turnaround in the pink ball Test.

Smith raised his fighting half-century off 108 balls with a cover boundary off Craig but fell to the spinner not long after.

Smith lost three batting partners before he fell.

Adam Voges looked flummoxed by Tim Southee's swing and after an edge that flew over the slips he edged to Martin Guptill two balls later at third slip for 13.

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.

Marsh drove Southee to mid-off where McCullum made a sprawling save only to throw down the stumps at the bowler's end with the batsman well out of his ground.

In 28 Test innings Marsh is averaging 31.96 and it was the 12th time he has been dismissed in single figures.

Things got worse for the Marsh family when younger brother Mitchell was caught behind off Doug Bracewell for four off 25 balls leaving the home side struggling at 80 for five at first drinks.

New Zealand, unbeaten in their last seven Test series since 2013, have to win the historic Test to draw the series after Australia won the Brisbane opener by 208 runs and last week's second Test in Perth finished in a high-scoring draw.