The move follows a spike in coronavirus cases over the past two days.
Travel bans are already in place for visitors from Iran, China and areas of South Korea.
Prime Minister Scott Morrison told a press conference, 'We’ve received advice today regarding Italy.
'And that advice is that as the situation in Italy is now commensurate with the other countries where we previously had travel bans put in place, so we’ll be extending that travel ban to Italy now.'
Australian citizens and permanent residents returning from Italy will be able to enter Australia as long as they isolate themselves for two weeks.
However tourists and other visitors who are not citizens or permanent residents will not be allowed to enter Australia until they have spent 14 days outside Italy.