The share market closed higher after international lenders reached an agreement on a new debt target for Greece.
After 14 hours of talks, the so-called troika of international lenders has agreed to cut Greece's debt by 40 billion euros by 2020.
The agreement, which comforted equity markets, was needed for Greece to get a new round of bailout funds and avoid bankruptcy.
The All Ordinaries added two-thirds of a per cent to 4,473, while the ASX 200 gained three quarters of a per cent to 4,457.
Resource stocks led the gains for much of the day, just coming off session highs towards the close.
BHP Billiton added half a per cent, while Rio Tinto gained 1 per cent.
The healthcare sector was the standout though after blood products and vaccine maker CSL raised its outlook.
Its shares leapt, closing 7 per cent higher at a record high of $50.01.
The financial sector was one of the weaker performers, seeing modest gains.
The big four banks all ended in positive territory; ANZ led, finishing up 1 per cent, while the Commonwealth Bank lagged, closing where it started the day.
The dollar jumped against most of the major currencies as the European decision boosts risk assets.
About 5pm (AEDT) the Australian dollar was buying 104.8 US cents, 80.1 euro cents, 65.3 British pence and 86 Japanese yen.
West Texas crude was worth $US87 a barrel, while Tapis remained unchanged at $US116.
Spot gold was flat at $US1,750 an ounce.