The voluntary software is based on Singapore's TraceTogether and it will use a mix of Bluetooth and stored contact data on both the app and servers to let people know if they have been in close contact with people who have tested positive for COVID-19, Engadget reported.
The Australian government has also promised that the COVID-19 tracking app will not collect locations and will only share data with health officials after an infected person offers consent.
The government has also vowed to delete information on its end when the pandemic is over.
Applications like COVIDSafe may prove vital in order to end lockdowns in countries as it will it easier to track the spread of the coronavirus.
( With inputs from ANI )