States and territories are slowly reintroducing restrictions and updating how they trace and isolate positive cases as infections soar across the country.

Compulsory mask wearing is now in place across almost every state and territory after NSW Premier Dominic Perrottet backflipped on his anti-mandate position on Thursday.

The state will also reintroduce QR codes for hospitality and retail as well as some lower risk settings, while density limits will return after Christmas.

It comes after the state hit a new record of 5715 daily infections and one death on Thursday, which is up almost 2000 cases from the day before.

Victoria also reintroduced a mask mandate, with the state recording more than 2000 new infections and 10 deaths on Thursday.

Western Australia Premier Mark McGowan followed the lead of the two biggest states after a backpacker tested positive on Thursday and was infectious in the community for a number of days.

High risk, large public events will be cancelled and dancing has been banned except for at weddings.

"I know this is not the news we wanted to hear two days before Christmas, but unfortunately this is the reality of COVID-19," he said.

Queensland reported 369 new daily infections, South Australia 484, Tasmania 26 and the Northern Territory 10.

The ACT also recorded a new daily case record with 85 new infections, prompting the territory to update its definition of a close contact in light of the spike.

Close contacts will now only be defined as a household contact of a positive case, or someone who has spent an extended period of time with a positive case.

Casual contacts will no longer need to fill out a declaration form for ACT health authorities, but will still need to get tested and isolate until a negative result is received.

There are also growing calls for the federal government to make rapid antigen tests available for free as concerns rise over a Christmas spike.

The NSW government announced on Thursday it's intention to make rapid antigen tests free to ease congestion at overwhelmed PCR testing sites.

Mr Perrottet said people lining up for a test who don't have symptoms or aren't close contacts should take a rapid test instead.

"If you don't feel unwell and you are not required to get tested by NSW Health, please don't because you're taking (someone's) place in the queue and slowing down people who are required to get tested," he said.

The NSW government estimates about one in five tests are for the purposes of travel, and this number jumps to around 50 per cent in the ACT, according to the territory's health minister.

The blown out lines at testing clinics around the country have prompted calls for a rethink of entry requirements in states like Queensland which demand a negative PCR test prior to arrival.

Queensland will move to allow rapid antigen tests ahead of travelling but not ahead of the new year.

Opposition leader Anthony Albanese wants the federal government to do more on the rapid testing front.

"I don't think anyone should be excluded from getting a rapid antigen test because of their income," he said.

The federal government has put in free rapid testing measures at residential aged care facilities but resisted calls by medical professionals to make the tests free universally.

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Queensland's daily COVID-19 numbers continue to jump substantially with 369 new infections recorded, up from 186 the previous day.

The increase in cases came as Premier Annastacia Palaszczuk flagged changes to the state's regime for travellers arriving from interstate hotspots, but not in time for Christmas.

Currently, those wanting to come to Queensland must get a negative PCR test result in the 72 hours before arriving, but waiting times at testing clinics around the country have blown out.

"We had a great national cabinet meeting yesterday, we're talking about those rapid tests ... we're looking at bringing those in on the first of January," Ms Palaszczuk said on the Gold Coast on Thursday.

"When I went to Tokyo, you actually got your testing done there and then. You waited 15 minutes and you were free to go.

"Perhaps the airports could help us as well."

Arrivals from NSW, Victoria and the ACT were increasing by "about 30,000 a day", she said.

As cases continue to climb in Queensland, Chief Medical Officer John Gerrard said one person was in hospital sick with the virus.

Another 93 people are in hospital beds for isolation and quarantine reasons, while 163 cases are being managed at home.

"Not only is the spread of this virus inevitable, it is necessary," he said on Thursday.

"In order for us to go from the pandemic phase to an endemic phase, the virus has to be widespread."

The only two options to develop immunity were to get vaccinated, or get the virus, Dr Gerrard said.

The high case numbers are causing havoc for small businesses forced to close in the run-up to Christmas after restaurants are listed as exposure sites.

Townsville Yacht Club manager Mark Cruickshank said his venue has shut down while staff waited for test results after becoming a close contact.

"Unfortunately we don't have the back-up staff to open so we were forced to close yesterday," he said.

The announcement came in the middle of lunch on Wednesday, with Christmas functions cancelled that evening.

Opposition Leader David Crisafulli said business owners wanted clarity and consistency.

"They feel as much confusion now as what they did two years ago when COVID first came to Queensland," he added.

The state reached the 90 per cent threshold for first-dose vaccinations on Wednesday, according to federal government data.

At least 85.65 per cent of eligible residents aged over 16 are fully vaccinated as of Thursday, with modelling suggesting Queensland will hit 90 per cent double-dosed in early-to-mid January.

The state has hit 90.25 per cent of people having received one dose of a vaccine, according to federal government data.

Meanwhile, a new mandate is being enforced throughout the state, with masks required in theatres and cinemas as well as for workers in hospitality venues.

Ms Palaszczuk pleaded with Queenslanders to go beyond the mandated rules and wear masks in public indoor areas.

"When you are going indoors, please mask up," she said.

Masks are already mandated in supermarkets and shops as well as public transport and rideshares.

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Indoor mask wearing will be again compulsory in NSW after Premier Dominic Perrottet backflipped on restrictions, in an attempt to suppress a spike in coronavirus cases.

The state recorded 5715 cases on Thursday, just 10 shy of the nation's total for Wednesday.

"As of midnight tonight, we will be requiring that masks are worn in indoor settings, " Mr Perrottett said.

Hospitality venues will move to a two-square metre rule from December 27, while QR codes will again be compulsory.

"That's just to ensure as we move through this period of time we do have that support for our health officers over this summer and holiday period."

Since lifting most restrictions on December 15, the premier had struck a confident note and urged residents to take "personal responsibility" and help lead the nation out of the pandemic.

But cases have spiked since, with more than 20,000 testing positive since December 16 and testing clinics being overwhelmed.

Only 52 per cent of cases were notified to NSW Health by laboratories within one day of sample collection in the week ending December 19, down from 85 per cent the previous week.

While 94 per cent of cases were fully interviewed by NSW Health within one day of notification the previous week, now only 54 per cent are.

The surge in cases has also seen the number of healthcare workers in isolation nearly triple - from 459 to 1364 - in a single week.

The dramatic spike in cases just two days before Christmas had already pushed the government to change its mind on mandatory check-ins to venues across the state.

Check-ins will be mandatory again at supermarkets, shops and hospitality venues.

Despite the rise in cases, health advice indicated disease caused by the Omicron variant appeared about five times less severe than Delta, Mr Perrottet said.

Sydney remains the state's epicentre of the virus, but transmission is also raging in the Hunter New England area, which has 976 new cases.

The South Eastern Sydney Local Health District has the most cases, with 1186 recorded in the last 24-hour period.

The district has just under one million residents, taking in suburbs like Darlinghurst, Watsons Bay, Maroubra, Woollahra, Waverley, Randwick, Bayside, Kogarah, Hurstville and the Sutherland Shire.

One death, an unvaccinated man in his 40s with underlying health conditions, was recorded on Thursday.

The number of people in hospital has climbed to 347, up 45, with 45 in ICU, 13 of whom are on ventilators.

Most of the intensive care patients are unvaccinated.

© AAP 2021

Indoor mask wearing will again be compulsory in NSW after Premier Dominic Perrottet backflipped on several restrictions, in an attempt to suppress a spike in coronavirus cases.

The state recorded 5715 cases on Thursday, just 10 shy of the nation's total for Wednesday.

Hours later, Mr Perrottet said mask rules for indoor settings would return from 12.01am on Christmas Eve.

Pubs, restaurants and other hospitality venues will move to a two-square metre rule from December 27, when QR check-ins will also again become compulsory in hospitality and retail.

"We believe the changes ... will ensure that our health system is well manned over the holiday season as we go through this next stage," the premier said.

"Our number one priority is to keep people safe.

"We continue to open up the economy safely and are incredibly confident that NSW and our great people have made enormous efforts and sacrifices over this period of time."

Restrictions will remain in place until at least January 27.

Despite the rapid rise in cases, current health advice suggested the Omicron variant was about five times less severe than Delta, Mr Perrottet said.

Addressing the strain on PCR testing clinics, he said the government would investigate how to provide rapid antigen tests to the general population.

But free kits won't be available until an unknown date in 2022 - providing little comfort for those currently unable to find or afford the coveted tests that retail for about $15 each.

Since lifting most restrictions on December 15, the premier had struck a confident note and urged residents to take "personal responsibility" and help lead the nation out of the pandemic.

Instead, NSW led the nation in cases - more than 23,700 have tested positive in the past week, including 16,800 people aged between 10 and 39.

Testing clinics and labs have also been overwhelmed.

The time between a sample being taken and labs telling NSW Health it is positive was under 24 hours in only half of cases last week.

Meanwhile, the number of healthcare workers in isolation has tripled - from 459 to 1500 - in nine days.

Casting the reintroduced restrictions as sensible, modest and precautionary, Health Minister Brad Hazzard asked people to reduce the risk by hosting any visitors outside.

"If you can't do that, open all the windows," he said.

Dr Kerry Chant apologised for discouraging fun activities such as singing and dancing, known to increase the risk of transmission.

"Please take those activities outdoors, with lots of social distancing," the NSW chief health officer said.

She said the new QR code regime would be less stringent than before December 15.

Retail was a lower risk setting when people wore masks and socially distanced, she said, meaning contact alerts would act as a prompt, rather than a direction to isolate.

"NSW Health will only be contacting and focusing our efforts on people that have entered or worked in high-risk settings," Dr Chant said.

Royal Australasian College of Physicians president-elect Jacqueline Small expressed relief NSW had moved in line with medical experts.

Meanwhile, Opposition Leader Chris Minns said NSW should pull "whatever levers we can ... to get this pandemic under control, short of a lockdown".

In the past three days, one in 275 people living in Newcastle and its surrounds and one in 500 people in Sydney's inner west, east and southern suburbs have tested positive.

In that time, the number of people in hospital has climbed 86 to 347.

Most of the 45 currently in intensive care are unvaccinated.

"It's really sad to see some very young people in ICU who are not vaccinated," Dr Chant said.

© AAP 2021