Large areas of Australia's east, in the midst of the third worst drought on record, experienced about 50 millimeters (1.9 inches) of rain.

Australian Livestock and Property Agents Association Dick Cameron said the rainfall at least offered farmers some hope and would allow them to sow winter crops.

"This isn't drought-breaking but it's a huge lift and provided we get significant follow-on (rain) things will look pretty good ... there are many more people still in serious trouble, we need to see general rain everywhere before you can say that the bush is out of trouble," Cameron told Australian Associated Press.

Meteorologist Paul Graham said more rain was forecast for later in the week.

"It's looking better than it has for ... quite a long time," he said.

Economists last week estimated the drought would cost the economy approximately four billion dollars (3.07 billion US) this financial year.

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