The Italian had crashed in FP1 but manage to bounce back to impress in the second stint of running - with reigning champion Jonathan Rea of Kawasaki coming in second overall with a time of 1.41.311s.
Alvaro Bautista of Team HRC was fourth fastest for the day.
1. Loris Baz (Ten Kate Racing Yamaha) 1’40.249 2. Jonathan Rea (Kawasaki Racing Team WorldSBK) +0.062s 3. Michael Ruben Rinaldi (Team GOELEVEN) +0.076s 4. Alvaro Bautista (Team HRC) +0.143s 5. Scott Redding (ARUBA.IT Racing – Ducati) +0.193s 6. Chaz Davies (ARUBA.IT Racing – Ducati) +0.223s
Big crash, drama and comedy - Looking back at Phillip Island