At 10:30 (AEST), the benchmark S&P/ASX 200 index lost 63.30 points, or 1.02 percent, at 6,128.50, while the broader All Ordinaries index was down 63 points, or 0.98 percent, at 6,340.10.
Aussie shares joined other global equities in shedding value, as investors displayed global growth concerns.
"The increasing likelihood that the U.S. government will not deliver a stimulus bill before the Nov. 3 election and signs of declining demand for petrol saw investors move to alternative markets," CMC Markets chief market strategist Michael McCarthy said.
Local energy producers were the biggest weight, having led gains the day before, while all sectors were trending firmly lower in early trade.
Materials were the exception, with the majority of iron ore producers posting modest gains, however these were offset by a slump from Fortescue Metals.
In the financial space, the big banks slumped with Commonwealth Bank down (1.21 percent), Westpac Bank down (1.82 percent), National Australia Bank down (2.15 percent) and ANZ down (1.63 percent).
Mining stocks were mostly higher with BHP up (0.14 percent), Rio Tinto up (0.14 percent), and goldminer Newcrest up (0.13 percent), however Fortescue Metals was down (1.12 percent).
The country's oil and gas producers plummeted with Oil Search down (4.07 percent), Santos down (2.51 percent) and Woodside Petroleum down (2.37 percent).
Australia's largest supermarkets sank with Coles down (1.71 percent), and Woolworths down (1.11 percent).
Meanwhile telecommunications giant Telstra dropped (0.54 percent), the national carrier Qantas lost altitude (0.92 percent) and biomedical firm CSL slumped (1.30 percent).
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