Woods finished two rounds at nine-under-par 135 and led by one stroke when he walked off the course.
The afternoon wave of players was getting underway at The Lakes Golf Club as Woods completed his second round.
Peter O'Malley fired a six-under 66 to jump into second place at minus-eight. Jason Day, who played alongside Woods the first two days, carded a four-under 68 and was two strokes off the pace at seven-under-par 137.
First-round leader Jarrod Lyle birdied the 11th, his second hole, to move to minus-eight.
Woods also played the back nine first on Friday. He birdied the par-four 10th, then converted back-to-back birdie chances from the 13th. Woods also birdied the 16th.
The former world No. 1 birdied the par-three 18th to take a two-stroke lead at minus-nine. After 20 bogey-free holes, Woods stumbled to a bogey on the third, but he came right back with a birdie on the fourth.
Woods tripped to another bogey on No. 6, but two-putted for birdie on the par- five eighth to regain the lead at nine-under.
Woods was one of eight U.S. Presidents Cup team players competing at this event. The squad took a blow when Hunter Mahan withdrew with a neck injury. He hopes the added rest will be enough to get him ready for next week's matches at Royal Melbourne.
There are four U.S. Presidents Cup team players competing in the afternoon wave, as is team captain Fred Couples.
International team captain Greg Norman is also on the course with two players from his squad.