Restrictions on the number of people allowed in cafes, bars and restaurants are returning to Victoria after the state recorded 21,997 new COVID-19 cases.

Density limits will be reintroduced from Friday, Health Minister Martin Foley announced on Thursday.

The new one person per two square metre rule for indoor hospitality and entertainment venues comes after one in three people who got tested returned a positive result.

Cinemas and theatres, where people are seated and masked, will be exempt.

The latest figures include six new deaths, and a rise to 631 people in hospital. There are 51 people in intensive care and 22 on ventilators.

Mr Foley will also sign off on a new category of COVID-19 contact on Thursday.

Anyone who returns a positive rapid antigen test is being classified as a "probable case".

He said the category, made official from midnight, would impose the same obligations and rights on people who have a positive PCR test, including access to clinical support and state and federal financial support.

"The goal is to make sure that we have less time at testing centres and that, as a result, people focus more quickly on the thing that is most important - getting through that COVID infective period and getting better with the support you need as quick as possible," he said.

It comes a day after national cabinet agreed people who record a positive result from a rapid antigen test will no longer have to get their results confirmed by a PCR.

Mr Foley said he appreciated the shortage of rapid antigen tests was causing transitional issues.

Victoria has ordered an extra 10 million rapid tests, taking the total number headed for the state to 44 million.

The first of those are expected to be deployed in coming days, though it's unclear how they will be distributed.

By 9am on Thursday there were 35 state-run PCR testing sites closed because they were over capacity.

VICTORIA'S LATEST COVID-19 FIGURES:

* Active cases: 61,120

* Hospital cases: 631, up 40

* Hospital cases seven-day average: 537

* Active cases in ICU: 51

* Cleared cases in ICU: 49

* Cases on a ventilator: 22

© AAP 2022

Tasmania will shift to rapid antigen tests as the primary tool for diagnosing coronavirus, following a recent national cabinet decision to alter testing requirements.

Premier Peter Gutwein made the announcement on Thursday, one day after the national cabinet decision, and said more details would be provided on Friday.

"Tasmania will shortly be moving to rapid antigen testing as the primary diagnostic tool to detect cases of COVID-19," he said in a statement.

He said people who test positive on a rapid antigen test (RAT) will be considered a case of COVID-19 and will be subject to the same requirements as a positive PCR-recorded case.

Mr Gutwein said RATs will be free to anyone in Tasmania in the same way PCR testing has been.

Anyone requiring a test - people who are symptomatic or a close contact - can arrange a RAT or PCR test by contacting the public health hotline.

Mr Gutwein said people who return a positive RAT must register their result through the public health hotline or the state's coronavirus website.

They will then be able to access care and be eligible for financial assistance.

Mr Gutwein said PCR tests will remain available for people who cannot access a RAT, cannot use one, are having trouble interpreting the result or have been clinically directed to have a PCR test.

"Tasmania's PCR testing capacity will continue to be maintained to continue responding to the current level of transmission," he said.

A statewide distribution model is being finalised to ensure people can access RATs, Mr Gutwein said.

Tasmania has increased its order for RATs to five million.

Prime Minister Scott Morrison announced on Wednesday people who return a positive COVID-19 result from a RAT no longer need to have their infection confirmed with a PCR test.

Tasmania's testing clinics have been unable to meet a surge in demand, with health authorities conceding the true number of active cases is likely double the recorded figure.

The state reported 751 new cases on Thursday, pushing the number of active cases to 3534.

The daily case figure is a drop from Wednesday's record of 867.

One patient is being treated in hospital specifically for coronavirus symptoms, while four other people are in hospital for unrelated medical conditions.

Of the active infections, 374 are being monitored at home and 64 are staying in community management facilities.

Remote King Island, which has a population of about 1700, recorded 30 fresh infections after a positive case visited several large events.

Labor opposition health spokeswoman Anita Dow said the government had promised testing capacity but has fallen short.

"The premier has once again moved the goalposts, with (the) announcement a sign of the extreme pressure and stress on our health workers and health system," she said.

Tasmania had no cases when it reopened to mainland hotspots on December 15.

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Mercedes-Benz says it is recalling hundreds of thousands of cars due to a technical fault.

Certain vehicles in the GLE/GLS, C-Class, E-Class, S-Class, E-Class, GLC, CLS and G-Class series with diesel engines could develop a leak, the Stuttgart-based luxury carmaker said on Wednesday.

As a result of the problem, a rise in component temperature cannot be completely ruled out, it added.

More than 800,000 vehicles worldwide are affected, according to reports in Germany's Bild tabloid and Handelsblatt business daily.

Mercedes-Benz would not comment on the exact figures.

The company, a subsidiary of Daimler, pointed out that the recall had already been published in November.

Until taken to a workshop for repair, "the vehicle affected by the recall should be driven with particular caution and use should be limited to the minimum necessary," it said.

The replacement of the affected parts is scheduled to start in mid-to-late January. This also depends on the release of relevant software and the availability of parts.

© DPA 2022

The national cabinet has agreed to multiple changes to COVID-19 testing requirements to help alleviate pressure on stretched health systems around the country.

Rapid antigen tests will play a key role in tackling the Omicron wave with leaders agreeing to provide 10 free rapid tests to more than six million Australians who are concessional card holders.

The tests will be available through pharmacies within the next two weeks.

Universal access to free rapid tests was not agreed to by any state or territory leaders or the federal government, Mr Morrison told reporters in Canberra.

"The cost for those tests being provided concessionally will be met 50-50 by the states and territories and the Commonwealth," he said.

The prime minister said 200 million rapid tests would be coming to Australia over the next two months.

He said retailers caught hiking up prices by more than 20 per cent could face a penalty of $66,000 and up to five years in jail.

National leaders also agreed to limit the number of tests people can buy to one box of either two or five tests at a time.

People who return a positive COVID result from a rapid antigen test no longer need to have their infection confirmed with a PCR test.

Testing sites will also begin administering rapid tests to help ease the pressure on pathology labs.

Overseas travellers will need to have a rapid test upon arrival and will no longer need to have a second PCR test after arriving in Australia, except if landing in Queensland.

Mr Morrison said all states and territories were moving away from the requirement for a rapid antigen test to travel.

However this was not the case in WA, which did not send a government representative to attend the national cabinet meeting.

"Western Australia will continue, while they were not there today, to operate as they have been," the prime minister said.

"We envisage that when they open their border and are confronted with the same issues, that they will move into the same system that is operating elsewhere in the country."

Opposition Leader Anthony Albanese had earlier urged the government to make the tests free for everyone, labelling the Commonwealth's plan a failure.

"People are crying out for action, the economic consequences of this government's failure to put in place a proper system are there for all to see."

Mr Albanese had previously called for the rapid tests to be made affordable but later changed to wanting the tests to be provided free.

"We've considered the options and the clear and simplest, most cost-efficient way is to make tests available," he said.

Rapid tests have been made free in countries such as the US, UK and Singapore.

The Public Health Association of Australia and Australian Medical Association added their voices to the chorus for free rapid tests.

Mr Morrison said Omicron had caused a major disruption in Australia, and making the rapid tests free would not immediately solve issues.

"There's no silver bullet, making everything free is not a silver bullet," he said.

National cabinet was also due to consider whether to change the criteria for who is included in hospitalisation figures, but a decision was not reached.

The discussion comes after it was revealed earlier in the week that some people were being admitted to hospital for non-virus related health issues before later testing positive.

On Tuesday, there were 176,223 boosters administered across the country, the highest daily number for the third doses.

More than 64,000 COVID cases were reported nationally on Wednesday, the highest daily number since the pandemic began.

NSW registered a high of 35,054 cases and eight deaths, while there were 17,636 cases and another 11 deaths in Victoria.

Tasmania had a record of 867 infections, with Queensland reaching 6781, SA with 3493, the ACT with 810, NT 117 and WA 16.

© AAP 2022