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The Australian economy remains in a solid shape in the face of the coronavirus pandemic but Tasmania is the stand out state for the eighth quarter in a row, Commonwealth Securities says.

In its quarterly State of States report CommSec says Tasmania has again held on to top slot and is likely to remain so in the short-term, but it warns much can change over 2022.

The other state and territories followed closely together, with South Australia ranked second, Victoria third, Western Australia fourth,Queensland fifth, NSW sixth, the ACT seventh and the Northern Territory eighth.

"The Western Australian and South Australian economies have moved up the rankings, performing strongly during the pandemic," CommSec chief economist Craig James says.

WA has benefited from a surge in iron ore exports and prices, while SA has enjoyed strong government and business investment.

Each quarter CommSec assesses state and territory economies on eight key indicators - economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.

Tasmania leads on four of the eight indicators - equipment, unemployment, retail spending and dwelling starts - and ranks second on another two - economic growth and construction work done.

"Lockdowns have weighed on the economic performances of NSW and the ACT in the last survey," Mr James said.

"While both of these economies could scale the rankings again, new challenges are presented by COVID-19 restrictions and the resulting labour shortages - not just for NSW and the ACT but for all economies."

He expects the opening of domestic and international borders is also likely to further support the Queensland economy.

Mr James said all Australia's state and territory economies are in solid shape, supported by strong fiscal and monetary stimulus with unemployment rates historically-low across much of the nation.

"Labour is in short supply across many industries, a reflection of current COVID-related self-isolation requirements and border restrictions," he said.

"Ahead, the country will continue to face challenges managing the latest Omicron wave with infrastructure spending continuing to be a key driver of growth in 2022."

© AAP 2022

Another day, another milestone for Ash Barty as the world No.1 passed her sternest test yet to move safely into the Australian Open quarter-finals in Melbourne.

Barty dropped serve for the first time all tournament before seeing off US prodigy Amanda Anisimova 6-4 6-3 in one hour and 14 minutes on Sunday night.

The 25-year-old Wimbledon champion is the first home hope to reach at least the last eight of the Open for four consecutive years since Wendy Turnbull in 1984.

But having come this far before - and beyond - and failed to walk away with the trophy she most covets, Barty modestly played down Rod Laver's gushing praise for his in-form compatriot.

Enjoying a front-row view of Barty in the arena named in his honour, Laver declared the top seed "unbeatable" while playing as imperiously as she has this summer.

"He was unbeatable. I'm certainly not," Barty said.

"I'm just out here doing what I can, enjoying it.Try and make my opponent's life as uncomfortable as possible. That's my job, ultimately.

"Obviously (Laver) is an exceptional human being. He's an amazing champion of our sport. He's iconic. It's just amazing to be in his presence."

Herself unbeaten in nine matches since hiring Aussie coaching guru Darren Cahill on a summer trial basis, and having taken out defending champion Naomi Osaka in the third round, Anisimova shaped as a huge threat to the top seed.

In the pair's only previous meeting, Barty had to pull out all stops in an epic comeback from a set and 3-0 down in the 2019 French Open semi-finals.

While Barty backed up that steely victory to capture her maiden grand slam title two days later in Paris, then climb to world No.1, Anisimova's own seemingly inevitable rise to super-stardom stalled two months after that Roland Garros run with the sudden death of her father.

But with Cahill in her corner, Anisimova has burst back to life this summer, winning her second career title in Melbourne and then powering into the last 16 of a major for only the second time.

Even after dropping the opening set against Barty on Sunday, the big-hitting 20-year-old continued to take the fight to title favourite.

She broke the top seed in the second game of the second set, snapping Barty's incredible streak of 63 consecutive service games held, to briefly silence the Rod Laver Arena crowd.

Barty, though, kept her cool, breaking straight back, then twice more to clinch a ninth successive win of her still-undefeated 2022 season.

"It was nice to be able to hold firm tonight and bring the points back into my patterns more regularly and the big ones when it mattered most," Barty said.

"Amanda's an incredible athlete. She's an incredible competitor. One of the best attributes is that she's able to turn up point after point after point.

"I enjoyed testing myself against her. She's got an exceptional game that puts you under the pump right from the get go.

"It's just nice to see her back playing her best tennis. She's a champion. She's going to be in deep stages of a lot of majors in her future, that's for sure."

Hoping to break the host country's 44-year Open singles title drought, Barty will play another American, 21st seed Jessica Pegula, on Tuesday for a place in the last four.

© AAP 2022

Students and teachers will be given rapid antigen tests to slow the spread of COVID-19 when they return to NSW classrooms next week.

As part of a long awaited back-to-school plan announced on Sunday, six million rapid test kits are expected to be available for distribution by Wednesday.

Two RATs per week for four weeks will be issued to all pupils and staff across 3000 primary and secondary schools. Early education and childcare centres will also be included in the scheme.

Schools will not be closed when there is a positive case, with no contact tracing for students and staff. However parents and guardians will be notified when infections are identified.

Premier Dominic Perrottet says it's the right decision for students to return to face-to-face learning amid the Omicron wave.

"I know many parents are anxious but ultimately we know kids do better in the classroom," he told reporters.

"Some students in our state have already missed a quarter of their schooling. It is what is best for mental health and social outcomes."

Education Minister Sarah Mitchell said four million RAT kits had already been issued to school communities and another two million would land by Tuesday evening, ahead of term one opening on February 1.

Ms Mitchell said she could offer no better assurance than saying she was "very comfortable" sending her own daughter to school and hoped other parents would feel likewise.

If students test positive, parents are asked to notify principals and keep children at home.

At the same time, Chief Health Officer Kerry Chant urged parents not to send kids if they have symptoms, regardless of their test result.

"Even if they have a negative test on the first day, please keep them home and do a repeat test. Only send them back if there is an alternate diagnosis," she said.

About 20,000 air purifiers will be issued to schools and principals provided with specific advice on how to maximise natural ventilation.

Masks remain mandatory for high school teachers and students and are recommended for pupils in Year 3 and above.

Visitors to schools will also be limited and COVID-safe plans implemented for excursions.

Extensive plans are in place to cover staff disruptions including calling up replacements from a pool of 1000 student and retired teachers as well as hundreds of trained departmental officers and school administrators.

The NSW Teachers Federation said it would closely monitor the effectiveness of the back-to-school measures announced by the government.

"Omicron has taught us that nowhere is safe," president Angelo Gavrielatos said.

"That is why we have, and will continue to insist, that the implementation of risk mitigation strategies, such as rapid antigen tests, masks, improved ventilation and cohorting, is as robust as it can be."

United Nations children's agency UNICEF backed the return to school, describing it as proportionate and evidence-based.

With the state's TAFE system also set to resume, some digital courses are expected to start earlier while those involving face-to-face elements may be shifted to the second half of term.

NSW added 20,324 new COVID-19 infections on Sunday along with 34 virus-related deaths.

Of the 26 men and eight women, more than half were in their 70s or 80s. Only two were triple-vaccinated and six were unvaccinated.

The number of NSW hospital patients is slightly down, with 2712 in care. Of those, 189 are in ICUs - 15 fewer than for the previous 24 hours - and 72 require a ventilator.

Some 93.9 per cent of all eligible people aged 16 or over in NSW are now double vaccinated, while almost a third (32.8 per cent) have also had a booster shot.

More than a quarter (26.5 per cent) of kids aged five to 11 have had their first jab.

© AAP 2022