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.