New South Wales has recorded 6,062 new cases of COVID-19 and one death and Victoria has reported 2,738 new infections and four fatalities as PCR testing services continue to struggle to meet demand.
The new caseload in Victoria represents an increase of more than 700 cases from the 1,999 announced on Monday, while the number of new daily infections in NSW is slightly down from 6,324.
There are 557 people in hospital in NSW, an increase of 30, with 60 of those in ICU. In Victoria, there are 361 people in hospital, which represents a small decrease from 24 hours earlier.
On Tuesday, NSW Health Minister Brad Hazzard called on Queensland Premier Annastacia Palaszczuk to urgently reconsider the requirement to receive a negative PCR test in order to enter her state.
It comes as testing clinics across Australia struggle to meet demand over the holiday period, with reports of long queues at clinics and delayed results.
Mr Hazzard slammed what he described as "tourism testing", saying it had clogged up a critical system for symptomatic people in NSW who are forced to wait days to find out whether they are positive for COVID-19.
"It's putting enormous pressure, critical pressure on the clinical needs of testing in NSW for people who really need to know if they are positive or whether they are not to the current virus," he told reporters on Tuesday.
Ms Palaszczuk has said she will consider revising COVID-19 testing requirements for those entering Queensland on 1 January - but Mr Hazzard is hoping for a reconsideration sooner rather than later."I've encouraged in the strongest possible of terms the premier of Queensland to revisit her proposition that she will change the testing arrangement for travellers to Queensland in January," he said.
NSW Health Minister Brad Hazzard. Source: AAP
"There are incredible pressures on our pathology clinics ... Anything we can do to remove the pressure would be extraordinarily helpful."
The NSW government continues to push for rapid antigen tests to be used in lieu of PCR tests, which Premier Dominic Perrottet says is critical to ease the load of frontline workers who are struggling to keep up with demand.
But Queensland is refusing to budge - for now.
Queensland Health Minister D'Ath said the pre-arrival test was still necessary with daily rates surging in NSW.
"It is really important that pre-arrival test occurs, however ... we are currently looking at whether we can move to the rapid antigen tests from the first of January, but we've also got to make sure there's adequate supply," she said.
"COVID is spreading very quickly through NSW, we've still got to be careful."
Mr Perrottet also flagged his concerns on Tuesday around pregnant women waiting in these long queues, an issue he says is unacceptable.
"That shouldn't happen. No one who is pregnant should be sitting in long queues," he said.
"I made it very clear to the Health Minister to fix it, he's told me he is fixing it today and where else we can alleviate pressure on the system, we will."
He also announced the government has ordered over 20 million rapid antigen tests to be supplied across the state, and are expected to be available by the end of January.
Treasurer backs rapid antigen tests for travel
Federal Treasurer Josh Frydenberg backed the use of rapid antigen tests for interstate travel to help ease queues and pressure at testing clinics.
"Using that rapid antigen test ahead of interstate travel is a better approach than the more expensive and time-consuming PCR test," Mr Frydenberg told the ABC on Tuesday.
"I think that's a sensible balance recognising that people want some level of surety about their health status before they travel.
"But at the same time, they want to avoid the long queues and long waiting times coming with the PCR tests."
Asked if the federal government would consider supplying free tests, as is happening in the UK, US and in NSW from next year, Mr Frydenberg said: "We are looking at our options and also understand the states are as well".
Queensland eases travel rules, cases surge
COVID-19 infections have soared in Queensland to 1,158 on Tuesday, surging past 1,000 for the first time since the pandemic began.
Only six people have been admitted to the hospital, with none in intensive care.
The number of new cases was significantly higher than the 784 reported on Monday, and came after Queenslanders were repeatedly warned infection numbers were set to increase.
The Queensland government has since eased its travel requirements for people entering the state, officially scrapping the rule for travellers who are from 'hotspot areas' to obtain a negative PCR test on their fifth day in Queensland.
Hotspot travellers will still be required to get tested for COVID-19 if they are considered a close contact or develop COVID-19 symptoms.
Ms D'Ath announced the change to the day five tests, telling tourists in line at testing centres across the state to walk away.
She said of the tens of thousands of travellers who have crossed across state lines since the border re-opened, only 0.6 per cent have recorded a positive test in the day five test.
"The Chief Health Officer advised us that we no longer need to continue these tests," Ms D'Ath said.
"Anyone who is waiting in lines now for the day five test can they will not be required to get a day five tests from now.
"We thank everyone for doing the right thing - we have made sure we've done this in a safe and responsible way but from now, that no longer applies."
People entering into Queensland will still require border passes.
Chief Health Officer John Gerrard said scrapping the tests will allow Queensland Health resources to be "better used" elsewhere.
"The positivity rate in the second test taken on day five has proven to be extremely low, remembering that all of these people will have received a negative test prior to crossing the border," Dr Gerrard said.
"I believe that performing the day five test is unnecessary added these resources are better used elsewhere to test people with symptoms and for other reasons."
New guidelines for NSW healthcare workers exposed to COVID-19
It comes as NSW Health moved to need to avoid high-risk settings.
Healthcare workers exposed to COVID-19 in NSW will be able to leave isolation and return to work after seven days instead of 14 under new guidelines.
Close contacts and those with COVID-19 symptoms are also or having to queue up for hours, with clinics inundated with people requiring PCR tests to travel interstate.
On Monday, Australia surpassed the unwanted milestone of 10,000 new COVID-19 infections in one day, spurred by high case numbers in NSW, Victoria and South Australia.
NSW and Victoria formed the bulk of the country's near 10,200 new infections.
The two states recorded three deaths each, with NSW registering its first known Omicron fatality.
Meanwhile, St Vincent's Hospital in Sydney admitted to two testing blunders in as many days, revealing on Monday almost 1,000 people were told they were COVID-negative when in fact their results had not been returned.
Tasmania records 43 new cases
Meanwhile, Tasmania has recorded 43 new coronavirus cases, its second-highest daily infection tally since reopening borders about two weeks ago.
The figures, reported on Tuesday, take the state's number of active cases to 243.
The majority, 142 cases, are being managed at home, while there are 60 people in community management clinics and one person in hospital for an unrelated medical condition.
A further 21 people are still being assessed.
Tasmania was free of COVID-19 when it reopened to fully vaccinated travellers from mainland hotspots on December 15.
The state health department reported 44 cases on Boxing Day, with the figure dropping to 35 on Monday.
The state government is seeking advice on whether rapid antigen tests could be used to screen interstate arrivals.
Under current rules, all visitors from high-risk areas must return a negative PCR test in the 72 hours before they arrive in Tasmania.
Elsewhere, the ACT recorded its highest daily case numbers with 252, the Northern Territory 16 new cases, 995 in South Australia and Western Australia zero new local cases.
With AAP.