New South Wales lost 4 for 4 in a disastrous final-session collapse to give Victoria a huge first innings ascendency on a rain-affected second day at the MCG.

Victoria lost Jon Holland in the opening session to concussion following a heavy blow to head while batting. Holland was replaced by concussion substitute Wil Parker and will take no further part in the game.

But the home side bowled superbly with Scott Boland, James Pattinson, Will Sutherland and Mitchell Perry all playing a part in New South Wales' collapse late on day two as they slumped from 3 for 98 to 9 for 132 in the space of 16 overs before a heavy downpour ended play with an hour remaining.

Daniel Hughes had played very nicely in the face of sustained pressure from the Victoria quicks to reach 59. He scarcely made an error in his 132-ball stay. But his first error was a huge one after he played a ball into the gully region and started to run before Sutherland made a diving save. A mix-up ensued with Hughes stuck mid-pitch ball-watching as Jack Edwards responded to his call and Sutherland's throw to Pattinson beat Hughes' desperate dive.

Pattinson and Sutherland then ripped through the middle order, rewarded for a fuller length on an MCG surface with a lot of bounce, carry and sideways movement. Edwards, Lachlan Hearne and Sean Abbott all fell to outside edges as the Blues lost 4 for 4 in 15 balls. Boland returned to pick up some reward for his outstanding work earlier in the day. He finished the day with 3 for 33 having made the first breakthrough of the innings. Trent Copeland came out to bat at No. 11 with a runner after injuring his lower calf on day one and struck a powerful blow down the ground. He will start day three alongside Peter Nevill in the hopes of limiting the Blues' first-innings deficit.

Earlier, Victoria's tail lasted just 12 overs after Liam Hatcher and Nathan Lyon wrapped up the innings. Hatcher finished with career-best figures of 4 for 86 and also delivered the bouncer that ended Holland's match. He was hit flush on the helmet attempting a pull and was immediately concussed. Victoria declared and Holland was ruled out of the game.

"He's gone home, a bit of a headache," Boland said post play. "So we wish him well and hopefully he comes good in a couple of days."