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Come for its natural features, stay for its food and sparkling wine.

The Tasmanian city of Launceston has taken out the title of Aussie Town of the Year, marking the island state's inaugural win.

The award, by travel site Wotif, factors in the affordability of a town's accommodation, quality, and traveller reviews.

Wotif managing director Daniel Finch said interest in Launceston had skyrocketed.

"Launceston's fresh produce, renown sparkling wine, and commitment to great food is world-famous," Mr Finch said.

"With some of Tasmania's most spectacular natural landmarks just a short drive away ... it's no surprise that demand for the city has grown by over 125 per cent on Wotif.com."

The site found that there is plenty of interest in domestic tourism, even as international borders reopen.

The site found that 88 per cent of Aussies planning to travel in 2022 are looking to stay within Australia.

"2022 is set to be a pivotal year for domestic tourism," Mr Finch said.

"While many Aussies have travelled over the last 24 months, few have had the chance to really explore and travel across state borders."

Caloundra on Queensland's Sunshine Coast, took out second spot in the awards, while Tamworth in NSW, the Yarra Valley in Victoria, and the Adelaide Hills in South Australia rounded out the top five.

The Victorian towns of Bright and Halls Gap, Queensland's Hervey Bay, Batemans Bay in NSW, and WA's Busselton also made the list.

© AAP 2022

Russia faces the prospect of harsh new Western sanctions after President Vladimir Putin recognised two breakaway regions in eastern Ukraine and ordered the deployment of troops there, deepening fears of a major war in Europe.

Ukraine said two soldiers had been killed and 12 wounded in shelling by pro-Russian separatists in the east in the past 24 hours, and reported new hostilities on Tuesday morning.

A Reuters journalist saw tanks and other military hardware moving through the separatist-controlled city of Donetsk overnight.

Western leaders are trying to work out whether Russia plans a full-scale invasion of Ukraine after massing troops near the borders of its ex-Soviet neighbour and demanding a redrawing of security arrangements in Europe.

Ukrainian President Volodymyr Zelenskiy said his country may break off diplomatic relations with Moscow.

Russia's parliament ratified treaties with the two separatist regions on Tuesday.

Putin's announcement on Monday, and his signing of a decree on the deployment of Russian troops to "keep peace" in the two breakaway regions, drew international condemnation.

US President Joe Biden signed an executive order to halt US business activity in the breakaway regions and European Union officials met to discuss sanctions.

"We've got to ensure that, whatever happens, Russia will feel the pain ... to make sure Russia has absolutely no incentive to go further," said Ireland's Europe minister, Thomas Byrne.

Linda Thomas-Greenfield, US ambassador to the United Nations, said the description of the Russian troops as peacekeepers was "nonsense".

"We can, will and must stand united in our calls for Russia to withdraw its forces, return to the diplomatic table and work toward peace," she told reporters after an emergency meeting of the White House Security Council late on Monday

A senior US official said the deployment of Russian troops to the breakaway regions did not merit the harshest sanctions the United States and its allies have prepared in the event of a full-scale invasion, as Russia already had troops there.

Russian Foreign Minister Sergei Lavrov brushed off the threat of sanctions, saying the West would impose them regardless of events.

"Our European, American, British colleagues will not stop and will not calm down until they have exhausted all their possibilities for the so-called punishment of Russia," he said.

Russia has denied planning to attack its neighbour but threatened "military-technical" action unless it receives sweeping security guarantees including a commitment that Ukraine will never join NATO.

Russian foreign ministry spokeswoman Maria Zakharova said the recognition of the two regions did not affect Russia's readiness for talks with the United States, the Tass news agency reported.

Britain said it had drawn up sanctions to target those complicit in the violation of Ukraine's territorial integrity, and those measures would come into force on Tuesday.

China said it was concerned and urged all parties to exercise restraint while Japan said it was ready to join international sanctions on Moscow in the event of a full-scale invasion. Turkey said Russian recognition of the two regions was unacceptable.

Syria's foreign minister said Syria backed Moscow's decision to recognise the two breakaway regions, state television reported.

Russian-backed separatists in Ukraine's Donetsk and Luhansk regions - collectively known as the Donbass - broke away from Ukrainian government control in 2014 and proclaimed themselves independent "people's republics".

It was not immediately clear whether Russian troops would stay in territory controlled by the separatists, or seek to capture territory beyond them, a move that would increase the likelihood of conflict.

Britain's defence minister suggested some of the territory recognised by Putin was outside the current front line.

In a televised address on Monday packed with grievances against Ukraine and the West, Putin said eastern Ukraine was ancient Russian land and expressed frustration that Russia's demands for a rewriting of Europe's security arrangements had been rebuffed. .

© RAW 2022

One of four men charged over an Australia Day road rage shooting that left a Gold Coast father of two dead has been granted bail.

Haysam Hamdan, 43, was charged with murder over the death of Omega Ruston at Burleigh Heads on January 26, 2009.

He was arrested in Sydney while allegedly attempting to board a flight to Dubai carrying $25,000 cash.

His bail application in the Brisbane Supreme Court came after three other men faced court in Queensland over Mr Ruston's death.

Hamdan and co-accused Tony Elbayeh, 39, and Paul Younan, 37, face charges including murder and numerous counts of perjury.

Former bikie enforcer Brent Luke Simpson, 45, also faces charges of being an accessory, attempting to corrupt a witness and perjury.

The Australia Day Shooting involved two cars travelling south on the Gold Coast Highway - one containing Mr Ruston and two friends, the Supreme Court was told on Tuesday.

The second contained the three men accused of murder with Elbayeh driving, Younan in the back seat and Hamdan in the front passenger seat.

The two cars were involved in a "road rage incident".

"The occupants of each vehicle became involved in an expletive and hand gesture exchange," Justice Peter Davis said.

Mr Ruston's vehicle pulled to the side, with Elbayeh also stopping before pulling alongside.

Witnesses told police that Younan was armed with a handgun and fired two shots, hitting Mr Ruston and causing fatal injuries.

"This puts the applicant at the scene, but little if anything else," Justice Davis said.

"There is no evidence that the applicant did anything which caused or contributed to Mr Ruston's death.

"The applicant appears to have been a passive passenger in the car.

"The murder occurred some 13 years ago, and the case against the applicant for murder is not strong."

Justice Davis granted Hamdan bail to live with his sister in NSW after she posted a $900,000 surety.

Hamdan must surrender his passport, comply with strict conditions including a curfew and report daily to police.

© AAP 2022