"We can confirm that an IT issue impacted registers in our supermarkets for a short period of time this afternoon", a spokesperson for the supermarket chain told Computerworld.
Numerous customers have shared images on social media of long queues at cash registers and stores that have closed their doors.
Woolworth's haven't made a statement yet, but they are replying to tweets explaining that registers "are now back online in all of our stores".
A national technical outage brought sales to a standstill at the busy Mackay city store this afternoon.
Signs have been put up at a number of Woolworths branches apologising for the problem, which has been described as a "system fault".
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"Shoppers have been told to leave groceries in baskets in the aisle", one customer wrote on Twitter.
Shortly after 4pm, the issue began affecting all registers across the country.
According to multiple reports, Woolworths supermarkets around Australia are experiencing a technical issue that prevents them from processing any transactions.
Staff said every register in every store nation wide has shut down.