The COVIDSafe smartphone app - which uses a Bluetooth wireless signal to generate a so-called digital handshake with nearby users - has already been downloaded by more than a million Australians.
The app - which is able to log the data - tells people if they've had more than 15 minutes of close contact with another user who has tested positive for the virus.
Australia's Health Minister Greg Hunt wrote on Twitter: "As at 10:30 PM, 1 million Australians have now downloaded and registered for the #COVIDSafeapp - please join us and help protect ourselves, our families, each other but above all else our nurses and doctors (sic)"
According to the government, in order for the app to become effective, more than 40 percent of the Australian population will need to download it.
Users of the app are required to input some of their personal details, including their age range, a mobile number, a post code and their name.
However, all data will be removed after 21 days or whenever the app is deleted.