The Australian share market has rallied hard, with gains across the board as the federal government confirmed that wage subsidy programs would continue past September.

The benchmark S&P/ASX200 index closed Tuesday up 154.7 points, or 2.58 per cent, at 6,156.3 points, while the All Ordinaries index gained 156.5 points, or 2.56 per cent, at 6,268.8.

The Australian dollar was trading at 70.38 US cents, up from 69.88 US cents at Monday’s close.