Steve Smith won the day but lost his wicket as Australia finished 3-147 after an eventful opening day of the trans-Tasman Test series in Wellington.
New Zealand suffered an early collapse of 5-34 and were rolled for 183 in two sessions after being sent in by Smith at the Basin Reserve on Friday.
The tourists' response was initially just as jittery, with Joe Burns and David Warner both falling to Tim Southee.
Australia slumped to 2-5 before Smith and Usman Khawaja steadied in a 126-run stand.
The skipper was out in the sixth last over of the day for 71, caught and bowled by offspinner Mark Craig.
"He was very disappointed," Josh Hazlewood said, having grabbed figures of 4-42 from 14 overs.
"The way he got out after doing the hard work early.
"But they batted brilliantly, they're both in pretty good nick all the time it seems."
Craig was also kicking himself.
Smith was on six when an edge fell centimetres short of Craig at second slip, while he was on 18 when the ball burst through Craig's hands.
"I probably owe the boys 50 runs after putting Smith down," Craig said.
"No one likes dropping catches so it's disappointing personally."
Khawaja is 57 not out, having largely shown the sort of application and aptitude that was so sorely lacking from Australia during last year's Ashes.
Khawaja had a slice of luck on 34 when he misread a delivery from Craig - and was almost stumped - but was otherwise rarely rattled.
There was more drama in the final over, when Adam Voges shouldered arms to a beautiful delivery that nipped in and kissed the top of off stump.
It was called a no-ball but replays suggested Doug Bracewell had some part of his foot behind the line.
Smith's call at the toss was always going to be crucial to Australia's hopes of logging a two-Test series win that will deliver the No.1 Test ranking.
Unsurprisingly, Smith opted to bowl for the first time in his Test captaincy career.
It's been over five years since a side has won the toss and batted in a Test at the Basin and the pitch was typically green and lively.
"We would have bowled first as well but we've won Test matches here before batting first on these sort of wickets," McCullum predicted at the toss.
McCullum, playing his 100th and penultimate Test, was back in the stands soon after when an edge rocketed off his pads to Warner at third slip.
It was one of three wickets to fall in Hazlewood's opening spell.
First-change seamer Peter Siddle also created early carnage, dismissing dangerman Kane Williamson for 16 with his second ball.
"A little bit of added pressure there bowling first and sending them in but I thought we bowled really well," Hazlewood said.
Craig and Trent Boult fought back after lunch in a final-wicket stand worth 46 runs.
It was NZ's biggest partnership of the innings, while Craig top-scored with an unbeaten 41.
The tail wagged furiously, adding 86 runs for the final three wickets after NZ were in deep trouble at 5-51 in the 12th over.
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