Consumer confidence has fallen sharply as economic turbulence in Greece and China flows through to the outlook for the local economy.
The ANZ-Roy Morgan consumer confidence index fell 4.6 per cent to 111.0 in the week to July 5 - reversing most of the gains made since May's federal budget.
The slump was driven by an 8.2 per cent slide in respondents' views about the economic outlook for next year, and a 2.9 per cent drop in the five year outlook.
ANZ chief economist Warren Hogan said turmoil in global financial markets was to blame.
"Australians appear acutely aware of the threats posed to economic stability by both the Greek crisis and China's equity market collapse," Mr Hogan said.
"An almost five per cent decline in confidence in a single week is unusual and should be treated seriously, especially as it reverses a rising trend that has been in place for the last two months."
Greece is facing a potential exit from the euro zone after its citizens rejected the terms of a bail out proposal from its creditors.
China's share market continues to fall despite efforts by the country's government to provide stability after its recent heavy falls.
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