Australian stocks have plunged more than eight per cent as businesses shut their doors and borders close to halt the spread of the coronavirus pandemic.

The benchmark S&P/ASX200 dived 398.1 points, or 8.27 per cent, to 4418.5 at 1015 AEDT on Monday.

The All Ordinaries index plunged 399.1 points, or 8.22 per cent, to 4455.2 as stricter measures to control the spread of Covid-19 come into force.

A multibillion-dollar package of support for business and households impacted by the pandemic are on the agenda for federal parliament on Monday.

However some analysts say the measures are not enough to prevent a recession.

One Australian dollar was buying 57.02 US cents at 1015 AEDT on Monday, down from 58.82 on Friday when the share market closed.