Australia have set New Zealand a victory target of 244 in their must-win Champions Trophy clash at Edgbaston.
Adam Voges top-scored with 71 and stand-in captain George Bailey made 55 after winning the toss on a slow Birmingham wicket.
Allrounder Glenn Maxwell, who replaced axed opener David Warner, made 27 not out from 22 balls in a late cameo as Australia posted 8-243 from their 50 overs.
Defending champions Australia need to beat the Kiwis - who downed Sri Lanka in their first pool match - to have any chance of advancing to the semi-finals.
Australia were missing both skipper and star batsman Michael Clarke and Warner, who dropped as a disciplinary measure.
Warner was axed for an alleged assault on England's Joe Root in a Birmingham bar in the early hours of Sunday morning following Australia's 48-run loss to England at Edgbaston on Saturday.
New Zealand, who beat Sri Lanka by one wicket in their first group match, were led by left-arm seamer Mitchell McClenaghan's 4-65.
Shane Watson lasted just seven balls before he was caught behind by Luke Ronchi, who started his international career with a brief stint in the Australian one-day side before his recent switch of allegiance.
Phil Hughes was then run out for a duck after a botched single involving Matthew Wade (29) allowed Martin Guptill to take the bails.
The dependable Bailey, again captaining in place of the injured Clarke, was next man in and he and Wade steadied the ship with a controlled stand of 64.
Nathan McCullum (2-46) trapped Wade lbw, a verdict that was unwisely reviewed by the batsman.
Bailey's next partner was Voges and while Daniel Vettori (0-23) made it hard to score, the new man looked to pick up the rate.
The fourth-wicket put on 77 in 16 overs before McCullum managed to bowl Bailey, who had mustered a 71-ball half-century.
Australia made 25 without further loss in the batting powerplay, reaching 4-176 but the return of McClenaghan halted their progress.
He took two wickets in as many balls, Mitchell Marsh (22) misjudging a pull and the aggressive Voges hitting a full toss into the hands of a grateful Brendon McCullum.
That left Australia 6-196 with 35 balls remaining and they added 47 runs for the loss of two wickets.
Maxwell was key to that burst, hitting two sixes and a four off Kane Williamson.