‘Extreme urgency or events unforeseen’: Australian government buys up $62m worth of rapid antigen tests

The federal health department bought $62m worth of rapid antigen tests on Monday using the "extreme urgency or events unforeseen" provisions of its procurement rules as it seeks to secure stock to meet its commitment to provide free rapid antigen tests to lower-income Australians.

But the massive buying spree by the federal government could further exacerbate the shortage of tests on the open market.

Some suppliers are notifying customers that they are unable to secure supply from their importers and distributors.

Rapid Proof, a Melbourne-based online retailer, told customers on Tuesday it could no longer supply Hough brand tests because the company "could not meet supply".

Hough is one of the five companies contracted by the federal government on Monday to provide tests. Hough will provide $4.4m worth of rapid antigen tests to the Department of Health between 10 to 17 January, according to the note.

Chief executive Greg Hough said the government had asked for priority but his company was fulfilling orders in the order they were received.

He said the problem causing delays was at Sydney airport, where ground staff had been hit hard by Covid-19. He said he had been waiting for three days for a plane to be unloaded, with more delays expected for incoming shipments in the next few days.