"For a start it was at home. Secondly, it was against the No.8-ranked nation and Australia has never lost to anyone lower than eighth.
"Test rankings can be a joy when you are the top-ranked team in the world. But when you are out of form they can inflict the ultimate humiliation.
"Only a loss to Bangladesh or Zimbabwe would have been worse."
The Sydney Morning Herald conceded "the better team did win".
"Of course, any loss to New Zealand in anything other than rugby union or netball (or rugby league, hockey or sailing) is an occasion for rending our shirts. But when swing bowler Doug Bracewell completed his rout of the batting in Hobart, overcoming not only our Test XI but a most patriotic video review system, the Black Caps were celebrating history. Not since 1993 had they beaten Australia in a Test and not since 1985 had they done so in Australia, a match in which Bracewell's uncle John was a leading irritant.
"Australian cricket is no longer suffering delusions of grandeur, nor even, after yesterday, delusions of adequacy."
The Herald Sun described it as a "Day of shame".
"The Kiwis last won a Test in Australia in 1985 in Perth and this Black Caps team is so inexperienced it has collectively scored 2000 fewer Test runs than Ponting (12,656) alone.
"Australia has lost 16 Tests since 2008, with only the West Indies and Bangladesh having lost more Tests in the same period."
The Australian's Peter Lalor said the Aussie batting line up was in crisis ahead of a series against India.
"Opener Phil Hughes is the batsman who is in most trouble and Ricky Ponting is a major concern, but he appears to have the backing from a number of the selectors," he wrote.
"Being thrashed in a home Ashes series may have seemed the low point of Australian cricket, but scoring 47 in Cape Town and then suffering a historic loss to the eighth ranked New Zealand side proves this inconsistent team had new depths to plumb."
Tasmanian paper The Mercury slammed Australia's batsman, with the exception of David Warner, who carried his bat to a maiden century in the loss.
"Australia's Russian Roulette batting has again self destructed as the hosts crashed to a thrilling but embarrassing loss to New Zealand at Bellerive."
- HERALD ONLINE