Doug Bracewell took six wickets to bowl New Zealand to a first Test win over Australia since 1993 and a first Test win in Australia since 1986 as the Black Caps held on to claim victory in the second and final game in Hobart by just seven runs.
Australia, who had been set 241 to win, fell short when they were dismissed for 233 leaving David Warner unbeaten on 123 having carried his bat in vain as Bracewell returned figures of six for 40.
Australia looked close to pulling off a one-wicket win as Warner and Nathan Lyon (9) added 34 runs for the tenth wicket but Bracewell delivered the goods when Lyon was bowled.
Their chances had all but disappeared by then as they lost eight wickets for 77 runs having been 122 for one with Warner and Usman Khawaja (23) batting together.
Khawaja was caught by Ross Taylor off Trent Boult before Bracewell removed the experienced trio of Ricky Ponting (16), Michael Hussey (0) and Michael Clarke (0).
Southee then grabbed the scalps of Brad Haddin for 15 and Peter Siddle for two as New Zealand began to believe the victory was on the cards.
Bracewell struck again to having James Pattinson caught by Martin Guptill and Mitchell Starc bowled but the Black Caps were then frustrated for almost nine overs before Bracewell eventually got one through Lyon's defences.
Warner's maiden international century saw him face 170 balls, hitting 14 fours and the win for New Zealand ensured the series was tied 1-1 - enough, however, for Australia to retain the Trans-Tasman Trophy.
© Cricket World 2011
Open an account with bet365 today and qualify for up to £200 in free bets with our fantastic 100% Deposit Bonus.