Prime Minister Scott Morrison is calling on states and territories to keep borders open in the lead up to Christmas despite record case numbers in NSW.
NSW registered 2213 cases and one death on Friday, its biggest daily number of the entire pandemic as the Omicron variant continues to cause concern.
"We can't go back to lockdowns, we all know that," Mr Morrison said.
"The fact I can stand here and tell you that right across the country 90 per cent of our adult population is (fully) vaccinated (and) more than a million Australians have had their booster shots ... arms us to be able to deal with these new challenges."
His comments come as one health expert warned there are growing signs a fourth wave of COVID-19 infections is on the way ahead of the Christmas holidays.
Infectious disease expert Mary-Louise McLaws called on the federal government to make rapid antigen tests available for free so people don't inadvertently spread the virus while travelling during the holidays.
"All of a sudden we have got the highest number we have had in NSW and I think this is sadly heralding a fourth wave," Professor McLaws told Nine.
"We really do have to be careful because what we have learnt from the England experience when Delta happened (was) all of a sudden children became the target for the virus and this is exactly what is happening again."
Children aged between five and 11 will be able to receive their first jab from January 10 next year.
"While adults may be vaccinated and feeling quite comfortable with living with (Omicron) children have not been vaccinated and they are at great risk of being the next big group (infected)," Professor McLaws said.
Federal cabinet minister Peter Dutton said people may be shocked by rises in daily case numbers in the coming weeks and months - with NSW modelling pointing to a potential 25,000 cases a day by the end of January - but Australia remained in the best possible position to handle the virus.
"We want people to reunite at Christmas and not to miss out on having another family Christmas together," he told Nine.
Victoria registered 1510 new cases and seven deaths on Friday while the ACT had 20 new cases.
South Australia will ease restrictions further on December 28 despite recording 64 new cases.
Queensland Premier Annastacia Palaszczuk reintroduced a mask mandate for hospitals, retail, public transport and airports after the state recorded 16 new cases.
Former Australian deputy chief medical officer Dr Nick Coatsworth said despite a rise in cases, it was reassuring to see hospital admissions not rise significantly so far, despite the growing number of infections.
"We have ... emerging evidence that this is a milder variant, and I don't think those numbers are as of great a concern as we would be led to believe," he said.
"The answer is not increased restrictions, the answer is a booster blitz, which is exactly what we're going to do."
