That left the world number three alone in third place, just two strokes behind his fellow Australians Wade Ormsby and Scott Strange, who finished at nine-under.
American Boo Weekley, who led overnight after the first round was suspended because of thunderstorms, fired an even-par 72 to remain at six-under but dropped back to fourth place on a heavily congested leaderboard.
A group of five players entered the clubhouse at five-under with a handful of others, who were still to complete their second rounds after finishing off their first rounds in the morning, closing in.
Conditions on day two were perfect at the Royal Pines Resort Queensland, near where Scott was raised, and the defending champion made four birdies but gave back a shot with a bogey at the par-four 13th hole.
Ormsby and Strange had contrasting rounds. After making a bogey on his opening hole, Ormsby made an eagle at his third, the par-five 12th, then reeled off four birdies in a row from the 14th.
He made another birdie on the third hole, his 12th, then made a late bogey for a round of 67.
Strange produced the round of the day, a flawless six-under-par 66. He made a solid start, with two birdies on his front nine, before picking up four more on the run home, including one on his last hole to join Ormsby in the lead.
(Writing by Julian Linden; editing by Sudipto Ganguly)
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