A stylish century from Tom Blundell could not prevent Australia from overpowering New Zealand to claim a series-clinching, 247-run win with a day to spare in the second Test.
Off-spinner Nathan Lyon took 4-81 and claimed the last catch to dismiss Blundell late Sunday and paceman James Pattinson returned 3-35 on home soil.
Resuming on day four on 137-4, Australia declared its second innings at 168-5, with an overall lead of 487.
New Zealand lost three wickets for three runs in a top-order collapse as Pattinson struck three times in two overs, leaving Kane Williamson's lineup in a desperate position at 38-3 at lunch.
Williamson and Tim Paine both paid tribute to Australia's bowling attack and said staying accurate for long periods was the key to success on a pitch like the Melbourne Cricket Ground (M.C.G).
The Boxing Day test, New Zealand's first at the M.C.G. since 1987, attracted a crowd of 203,472 in four days of play.