Australia Covid update: Greg Hunt says Omicron may be peaking as NSW warned ‘difficult three weeks’ ahead

Health minister Greg Hunt says there are clear signs that the spread of the Omicron variant of the coronavirus is peaking.

His prediction came as tens of thousands of Australians continued to be struck by the highly infectious strain and the death toll continued to climb.

"There are signs that NSW in particular and the ACT may be peaking," Hunt told reporters in Canberra on Sunday.

"I won't call it as having reached it yet, but in particular what we've seen, is that all of these jurisdictions have so far significantly undershot the hospitalisation, ICU and ventilation predictions that were made at the outset."

NSW announced another 34,660 new Covid-19 cases on Sunday along with a further 20 virus-related deaths.

Victoria posted 28,128 new Covid infections and another 13 deaths, while Queensland reported 17,455 cases and three deaths.

The death toll also rose in the ACT, where there were two fatalities alongside 1,316 new cases, while Tasmania has 825 new cases.

The Northern Territory announced a seven-day "lockout" for Alice Springs after 327 cases were recorded there. A lockout means there are only four reasons unvaccinated people can leave their house such as essential shopping.

The NSW premier Dominic Perrottet said it was reassuring the state's exploding Covid caseload was not being matched by major increases in hospital numbers, but warned of a difficult time ahead.

"I think what we are seeing today is incredibly encouraging and pleasing but there's a long way to go," he told reporters in Sydney on Sunday.

"It's going to be a difficult three weeks."

While more people are dying than at any time during the pandemic, Perrottet said it appears the crisis is in fact tracking better than expected.

NSW hospitals are now caring for 2,650 Covid patients. Of these, 191 are in intensive care beds. At the depths of the Delta outbreak last September, there were 244 virus-infected people in ICUs.

Recent worst-case scenario modelling suggested 6,000 people would be hospitalised at the apex of the outbreak, with 10% of those patients in intensive care.

Even the best-case predictions painted a grimmer picture than reality, allowing for almost 3,160 people in care.

Perrottet says a full re-assessment of the forecast data will be conducted later in the week.

Victoria has received 3m rapid antigen tests, which will soon be handed out to the state's essential workers, people with pre-existing conditions and community groups.

The Victorian premier Daniel Andrews announced the state's "significant first batch" of rapid antigen tests had arrived, from a bulk order of 44m.

They will be distributed to essential workers in health and aged care, disability and emergency services from Monday.

Victorians with pre-existing conditions, that make them susceptible to severe illness, will also be prioritised for a rapid antigen test to ensure they are diagnosed so that care can be quickly provided.

Additionally, 60 community and multi-faith organisations would receive a "modest but important" portion of the free rapid antigen tests, to be handed out in a culturally appropriate way, Andrews said.

"Three million is a very important start, we are working very hard to make sure that each and every one of the orders that make up the 44m are honoured," he told reporters on Sunday.

"That will be 3m tests that don't need to be sourced elsewhere, so that alleviates some pressure."

Meanwhile, Hunt also announced $24m in additional funding to assist the temporary widening of telehealth consultations through GPs and other specialists due to the high infection rate from the Omicron outbreak.

The decision was widely applauded by GPs and other help groups.

The funding will also cover the continued supply of personal protective equipment, such as masks, respirators, face shields and gowns for face-to-face consultations, including patients that have tested positive through a rapid antigen test.

The latter aligns with national cabinet's 5 January decision that rapid antigen tests no longer need to be confirmed by a PCR test.