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Treasurer Josh Frydenberg has declared it is in Australia's interest to back global climate targets as he makes the economic case for a 2050 net zero emissions goal.
Prime Minister Scott Morrison insists the government has made no commitments despite mounting expectation the target will be locked ahead of a major conference in November.
Mr Frydenberg made an online speech to major employers on Friday, warning access to capital could be at risk if Australia opposes a shift to a cleaner economy.
Ahead of the address, he said Australia could not afford to be left behind while markets adapted to climate change.
"I certainly see it in our interest, being part of these global agreements. Many countries - over 100 - have agreed to net zero," he told the ABC.
"We're making progress internally in respect to that target."
Mr Morrison was asked if the treasurer's address amounted to the government making a decision to back the 2050 goal.
"If Australia had made such a decision, I would have announced it," he told reporters in Washington DC.
"It's Australia's ambition to move towards and to achieve net zero as soon as possible, and preferably by 2050."
Nationals leader Barnaby Joyce signalled his party's support would be conditional on guarantees of jobs being protected and power prices kept affordable.
"I've got no problems with any plan that does not leave regional areas hurt," he told ABC radio.
The deputy prime minister warned soaring gas prices in the UK showed the problems of renewable energy not delivering enough power.
Australia has become increasingly isolated over its refusal to adopt a 2050 net zero emissions goal.
While an increasing number of moderate Liberals have urged the prime minister to adopt the target, Nationals and other conservative MPs oppose the move.
Mr Frydenberg said there was no hiding different views among his colleagues.
"But at the same time, people recognise, I think in our team, of the systemic and structural changes taking place," he said.
"One of the reasons we're working through this issue methodically is because Australia doesn't sign up to targets without plans to meet them."
The treasurer also sent a message to banks, super funds and insurers about the need to continue investing in high-emissions sectors like mining, agriculture and manufacturing.
"If you support the objective of net zero, do not walk away from the very sectors of our economy that will need investment to successfully transition," told the Australian Industry Group.
The treasurer believes it is wrong to assume traditional sectors like resources and farming will face a decline during the economic transition.
"It's a long-term shift, not a short-term shock."
Mr Frydenberg warned reduced access to capital markets could affect interest rates on home and small-business loans, along with the viability of major projects.
"Australia has a lot at stake," he said.
"We cannot run the risk that markets falsely assume we are not transitioning in line with the rest of the world."
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Queenslanders have been told a complex mix of factors will determine if the state opens up in time for Christmas.
Deputy Premier Steven Miles says its too soon to provide any clarity on whether the state's borders will reopen in time for the holidays.
"When it comes to the border, well that will depend on the number of cases here and in NSW, as well as the vaccination rate here and in NSW, and the restrictions in place in NSW before we determine those here," he told reporters on Friday.
"Let's not forget most of NSW is in lockdown so the idea that our border is the problem is pretty theoretical when all the people who might want to cross the border should not be leaving their homes under their own government's directions."
When asked if Queenslanders should be planning for Christmas at home, he said that was still a few months away.
His comments came after official figures showed there are more than 3100 people waiting on applications for exemptions to enter Queensland.
The same figures indicate the state government's exemptions unit isn't keeping up with the volume of work it's responsible for.
The unit processed 302 applications in the 24 hours to 7am on Thursday but in the same time period, 235 new applications were lodged.
Queensland recorded no new cases of COVID-19 on Friday. In more good news, masks are no longer mandatory in public places as long as people are seated.
That means students and workers can now remove masks when they are sitting at their desks. It also means anyone heading to the upcoming big weekend of football won't have to wear masks while they are in their seats.
But people must put them back on when they are standing and moving around in public environments including retail stores, schools, sporting venues, cafes and bars.
Mr Miles said Queensland was waiting on revised modelling being developed for federal cabinet for a clearer idea about the risks of reopening at various rates of vaccination.
"Let's not forget that even the first version of the modelling still only said that at 80 per cent lockdowns would be more rare and regionally targeted," he said.
"Now, we've been at that stage all year, pretty much. We've only had short lockdowns that were regionally targeted.
"That's what the Doherty research said should happen at 80 per cent. We're already following, very closely, the national plan. Once we see that new modelling we'll be able to outline more about what will happen ..."
He said Queenslanders had been very clear in telling him "that Delta is the gift Queensland does not want from Scott Morrison".
Meanwhile, the state government's vaccination hubs will now offer walk-in shots on an ongoing basis.
"Effectively every weekend becomes like a super Pfizer weekend," Mr Miles said. "No appointments necessary, walk in and get vaccinated."
Nearly two thirds of eligible Queenslanders, 62.1 per cent, have now had one dose of a vaccine, and 43.3 per cent are fully vaccinated.
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NSW has reported 1043 new locally acquired cases of COVID-19 and 11 deaths, 10 of whom were unvaccinated.
Most of NSW is locked down and police are cracking down on compliance measures as authorities battle to contain the spread of the virulent Delta strain.
Of the 11 deaths in the 24 hours to 8pm on Thursday, one person was in their 40s, two were in their 50s, one was in their 60s, six were in their 80s and one was in their 90s.
It takes the death toll for the current outbreak in NSW to 277.
There are currently 1186 COVID-19 patients in hospital in NSW, with 232 in intensive care beds and 110 on ventilators.
"Everything we start doing, we look forward to doing at 70 and 80 per cent, must be done with a degree of caution and responsibility because otherwise too many people will end up in hospital," Premier Gladys Berejiklian said on Friday.
It comes after a trusted public health expert said on Thursday that the wave of coronavirus infections set to hit NSW hospitals could be double previous predictions.
Doherty Institute modelling used to determine reopening targets of 70 and 80 per cent vaccination coverage did not reflect the true severity of Delta strain infections, the institute's Director of Epidemiology, Jodie McVernon, told a NSW parliamentary hearing.
New international research shows the health outcomes from the Delta strain are worse than the original Alpha strain, and future Doherty modelling will now reflect this, she said.
If the severity from Delta is about twice what was originally assumed, the numbers of hospitalisations of unvaccinated people will probably be double what has been predicted, Professor McVernon agreed.
But the institute's modelling presented to national cabinet in July would not be significantly impacted, as the overall strategy focused on minimising case numbers.
But there could be implications for the NSW government's modelling predicting the stress on the health system as hospitalisations peak next month.
That modelling - conducted by the Burnet Institute - predicted cases would peak at a seven-day average of about 1500 in September, and more than 550 COVID-positive patients will require an intensive care bed by early November.
It showed hospitalisations across the state - with COVID-19 or otherwise - would likely peak in late October, with about 3400 people admitted in one week.
Ms Berejiklian at the time said the state's intensive care surge capacity of 1550 beds will likely hold up.
The Glen Innes and Orange local government areas exited lockdown on Friday, but the lockdown in Hilltops will remain.
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New evidence about the virulence of the Delta strain of COVID-19 may mean unvaccinated people will be hospitalised at twice the rate previously predicted, says a trusted public health expert.
Modelling by the Doherty Institute used when setting targets of 70 and 80 per cent vaccination coverage for reopening did not reflect the true virulence of the Delta strain, the institute's Director of Epidemiology, Jodie McVernon, told a NSW parliamentary hearing on Thursday.
New international research shows severity of health outcomes from the Delta strain is worse than the original Alpha strain, and future Doherty modelling will now reflect this, she said.
If the severity from Delta is about twice what was originally assumed, the numbers of hospitalisations of unvaccinated people will probably be double what has been predicted, Professor McVernon agreed.
But the impacts on vaccinated people are difficult to predict.
The Doherty Institute modelling presented to national cabinet in July would not be significantly affected by the international research because the overall strategy was about minimising case numbers.
But there could be implications for the NSW government's modelling predicting the stress on the health system as hospitalisations peak next month.
The institute is currently examining whether there should be higher vaccine targets for certain vulnerable groups to ensure equitable health outcomes, she said.
They are also examining the roles of public health measures like exposure venue notifications, now that vaccination numbers and cases are higher than they once were.
"At low case numbers and with a zero COVID strategy, those kinds of things were really important because you couldn't afford to miss one (case)," said Professor McVernon.
But transmission in shops and supermarkets is "vanishingly rare".
Contact tracing and quarantine measures may need to be focused on areas with lower immunisation or higher risk in the future, she said.
Earlier on Thursday, NSW Health Minister Brad Hazzard said the state was just weeks away from "effectively cutting loose" after almost three months in lockdown.
But he urged everyone to remain disciplined until 70 per cent double-dose vaccination coverage is reached.
NSW reported 1063 new locally acquired cases of COVID-19 and six deaths in the 24 hours to 8pm on Wednesday.
Health Minister Brad Hazzard on Thursday acknowledged the pandemic had been "gruelling" for everyone.
But as vaccination coverage among those 16 and over continues to rise, the end of lockdown is drawing near.
Once 70 per cent double-dose coverage is reached, fully vaccinated NSW residents can again visit the homes of others and attend hospitality venues, retail outlets, gyms and sports matches.
These freedoms may be restored as soon as October 11, the Monday after the 70 per cent mark is likely to be reached.
Additional freedoms - including international travel - will be restored at 80 per cent double-dose coverage.
More than 83 per cent of NSW residents 16 and over have had at least one jab, and 55.46 per cent are fully vaccinated.
"We are getting there, it's a really positive time," Mr Hazzard said.
"We're moving towards Christmas and it looks like we'll all be able to effectively cut loose - there'll be some restrictions but we'll be able to have a much better life in the coming weeks."
Lismore and Albury were released from stay-at-home orders at midnight after no new cases were reported since they were locked down on September 16.
Several local council areas in the state's west were freed overnight too, with Gilgandra and Brewarrina now at least 14 days virus-free.
Restrictions will also ease in Narromine from Saturday provided the town has no cases or sewage detections before then.
The Glen Innes and Orange local government areas will also exit lockdown from Friday, but the one in Hilltops will remain.
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