place of seamer Matt Henry, showed some resilience but Starc returned to bowl him for 31 before exiting the field.
Starc had captured the prized wicket of Kane Williamson for 22 with a trademark searing yorker, setting the tone for a tough day for New Zealand’s batsmen.
Josh Hazlewood was the first to strike, trapping opener Martin Guptill lbw for one run in his second over. He finished with 3-66, with Peter Siddle taking 2-54, his second wicket bringing up 200 in Tests.
Latham became the first to register a half-century in day-night cricket before he was caught behind off Lyon for 50.
It was the biggest international crowd at the Adelaide Oval since England’s headline-grabbing 1932-33 Bodyline series in Australia.
“It was a great day,” said Siddle. “For cricket it’s definitely been a great day.”
The Australians endured a torrid time against the hooping pink ball in their turn at bat under lights and Trent Boult had David Warner caught at third slip before Doug Bracewell bowled Joe Burns for 14.
“It was great to be part of it. It was an exciting day, there was an electric atmosphere out there,” Boult said.
“A few wickets tumbled. The game is well and truly progressed now.”
New Zealand, unbeaten in their last seven Test series since 2013, will have to win the historic Test to draw the series.
Australia won the Brisbane opener by 208 runs and last week’s second Test in Perth finished in a high-scoring draw.
Score Board
New Zealand won toss
New Zealand 1st innings
M J Guptill lbw b Hazlewood 1
T W M Latham c Nevill b Lyon 50
K S Williamson lbw b Starc 22
L R P L Taylor c Nevill b Siddle 21
*B B McCullum c Nevill b Starc 4
M J Santner b Starc 31
†B J Watling c Smith b Hazlewood 29
M D Craig b Lyon 11
D A J Bracewell c Burns b Siddle 11
T G Southee c Warner b Hazlewood 16
T A Boult not out 2
Extras (lb 1, w 2, nb 1) 4
Total (all out; 65.2 overs) 202
Fall: 1 7, 2 59, 3 94, 4 98, 5 98, 6 142, 7 164, 8 184, 9 194, 10 202
Bowling: Starc 9 3 24 3; Hazlewood 17.2 2 66 3; Siddle 17 5 54 2; Lyon 15 1 42 2; Marsh 5 1 12 0 (1nb, 1w); Smith 2 0 3 0
Australia 1st innings
J A Burns b Bracewell 14
D A Warner c Southee b Boult 1
*S P D Smith not out 24
A C Voges not out 9
Extras (b 4, lb 1, w 1) 6
Total (2 wickets; 22 overs) 54
To bat: S E Marsh, M R Marsh, †P M Nevill, P M Siddle, M A Starc, J R Hazlewood, N M Lyon
Fall: 1 6, 2 34
Bowling: Southee 7 0 16 0; Boult 6 2 15 1; Bracewell 5 2 6 1 (1w); Santner 4 0 12 0
Test debut: M J Santner (New Zealand)
Umpires: R K Illingworth (England) and S Ravi (India). TV umpire: N J Llong (England). Match referee: R S Mahanama (Sri Lanka)