Declaring on 7-471 midway through day two, the Blues, led by Charlie Stobo (4-7), tore through the Bulls' brittle batting line-up.
At stumps on Saturday, Queensland had crashed to 7-67, still trailing NSW by 404.
The Bulls crumbled from 2-43 to 6-58 as Stobo claimed all four wickets in that collapse.
Earlier, NSW captain Jack Edwards fell painfully short of his fourth first-class century, out for 95 to former Australia legspinner Mitch Swepson.
Ryan Hicks was the only member of the Blues' top seven not to register a fifty.
Axed Australia opener Sam Konstas brought up a confidence-boosting century on Friday, his first for NSW since October 2024.
Second-placed Queensland are missing key quicks Michael Neser, who is playing his third Test for Australia, and Xavier Bartlett (Australia A duties).
The Bulls are also undermanned in the batting department, with star opener Matt Renshaw at Allan Border Field playing for Australia A, veteran Usman Khawaja injured, and Marnus Labuschagne having been recalled to the Test team.
NSW entered the match fifth on the ladder, having won just one of their five Shield matches this season.
It comes just a week after they suffered an embarrassing defeat to Tasmania at Cricket Central when they capitulated on the final day on a flat pitch.
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