National cabinet is moving to scrap quarantine requirements for all close contacts of COVID-19 cases as soon as possible as well as to transition away from PCR testing.
Healthy people with mild respiratory illnesses will instead be encouraged to undertake voluntary self-isolation while symptomatic.
The Australian Health Protection Principal Committee will urgently review both measures and report back to the nation's leaders.
The changes come as tens of thousands of COVID-19 cases are recorded across the country.
NSW posted 12,850 new infections on Saturday, Victoria recorded 6075 and Tasmania posted 1130 cases.
There were another four virus-related deaths in NSW and 11 in Victoria.
Meanwhile, Australians are poised to find out whether they will be offered a second COVID-19 booster shot ahead of an expected winter surge of infections.
Health Minister Greg Hunt said the advice was expected by the end of the month on whether a fourth vaccine dose would be recommended for people over 65.
Mr Hunt said it was more likely than not a second booster would be advised.
The government has set aside $2.1 billion to prepare for winter, including $1.2 billion to help protect residential aged care and disability care sectors, $356 million to protect vulnerable population groups and a further $571 million for vaccines.
But while a COVID-19 spike was expected, it was unlikely to reach the same levels of early 2022, Mr Hunt said.
Plans have also been drawn up to handle a new - and possibly more infectious - Omicron sub-variant.
