At the market close the benchmark S&P/ASX 200 index was down 45.40 points or 0.86 percent at 5,206.90, while the broader All Ordinaries index was down 42.50 points or 0.80 percent at 5,258.80.
Financials were the heaviest, plummeting over 2.5 percent following a suggestion by the national regulator that banks and insurers cut dividends during the pandemic.
Also on Thursday, global ratings agency, S&P cut Australia's AAA credit outlook to negative following substantial government stimulus measures which could have long term effects.
"The COVID-19 outbreak has dealt Australia a severe economic and fiscal shock," S&P said.
"We expect the Australian economy to plunge into recession for the first time in almost 30 years, causing a substantial deterioration of the government's fiscal headroom at the AAA rating level."
In the financial space, Australia's big banks plummeted with the Commonwealth Bank down (3.33 percent), ANZ down (4.90 percent), National Australia Bank down (4.84 percent) and Westpac Bank down (5.28 percent).
Mining stocks slumped with Rio Tinto down (1.53 percent), BHP down (1.20 percent), Fortescue Metals down (1.49 percent), and goldminer Newcrest down (1.69 percent).
The country's oil and gas producers sank with Oil Search down (5.86 percent), Santos down (0.23 percent) and Woodside Petroleum down (0.80 percent).
Australia's largest supermarkets were mixed with Coles up (0.81 percent), and Woolworths down (3.10 percent).
Meanwhile telecommunications giant Telstra dropped (0.96 percent), the national carrier Qantas lifted (2.20 percent) and biomedical firm CSL edged lower (0.02 percent).
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