Australia's high vaccination rate puts it in good shape to battle the Omicron variant of COVID-19 without shifting back into restrictions, Prime Minister Scott Morrison says.
Mr Morrison visited Melbourne on Tuesday to announce an agreement with Moderna and the Victorian government to make mRNA vaccines at a new facility which could start as early as 2024.
The announcement came a day ahead of the reopening of Tasmania's borders and inbound travel for foreign students and skilled migrants.
As well, from Wednesday in NSW unvaccinated people will be allowed back in pubs, cafes, gyms and shops and mask mandates will be eased.
"We're not letting Omicron take us back," Mr Morrison said.
"We've decided as a country to live with this virus and Australians have worked so hard for that.
"Australia can now open up. This Christmas we're about to have is a gift Australians have given to themselves by the way they've worked together with the settings that we've put in place."
NSW recorded 804 new cases and one death on Tuesday with 168 people in hospital and 21 in ICU.
More than 93 per cent of the state's population aged 16 and over are fully vaccinated.
"We're not about to start backflipping," NSW Health Minister Brad Hazzard said.
However, he warned case numbers in the most populous state would rise as the unvaccinated mixed with the vaccinated.
Victoria recorded 1189 new cases - including three confirmed Omicron - and six deaths on Tuesday.
The ACT has recorded four new cases with four people in hospital, including one in intensive care, and the Northern Territory had four cases.
The latest vaccine figures show 89.5 per cent of Australia's 16-plus population is fully vaccinated and 93.4 per cent have at at least one dose.
Australian Medical Association vice-president Chris Moy said while evidence pointed to the new Omicron strain being milder than Delta, a large spike in cases could still be threatening if there is a large number of people in hospital at the same time.
Infectious diseases paediatrician Professor Robert Booy encouraged people to get their booster shots over the holiday season with vaccine immunity against Omicron likely being lower.
Lieutenant General John Frewen, who is leading the vaccine rollout, said he was happy with the uptake of booster shots, with 75,000 people getting their third jab on Monday.
Around 80 per cent of eligible Australia's had received their boosters before the recommended timeframe was brought forward from six months to five on Sunday.
