Australia eases Covid-19 isolation rules to try to end supply chain crisis

CANBERRA • Australian transport and freight workers who are close contacts of those infected with Covid-19 will no longer be required to isolate, as the country tries to end shortages at supermarkets.

Prime Minister Scott Morrison said the Cabinet decision was made following widespread supply chain disruptions triggered by a surge in Omicron infections and shortages of antigen rapid tests.

At present, up to 10 per cent of the workforce is on leave at any time due to the latest outbreak, he said, although the Australian Broadcasting Corporation has put that figure at as much as 50 per cent in the transport sector.

The lack of workers was leading to empty shelves in supermarkets countrywide, with one major chain, Coles, putting limits on purchases of meat and poultry.

"This is a constantly moving target. We know what we have to hit. Keep our hospitals going, keeping our health system strong and keeping as many people at work," Mr Morrison said, adding that it was a delicate balance.

As at Wednesday, Australia has recorded more than one million Covid-19 cases, a rapid jump for a country which until recently was embracing a zero-Covid-19 policy.

Some businesses have obtained government exemptions to get their employees to return to work even if they have tested positive.

"We're facing a disaster, there's no other word for it," said Dr Jim Stanford, an economist and director of the Centre for Future Work. "If a pandemic rips through the workforce, there's no way to avoid massive economic consequences."

The staffing shortages come as Australians struggled to get access to antigen rapid tests. Federal and state governments will stop providing these kits free of charge to all citizens while pharmacies in most major cities are routinely sold out.

Opposition Labor Party leader Anthony Albanese said it was untenable for workers to be unable to access rapid testing, especially those in healthcare.

To cope with demand, state and territory leaders have announced their own mass purchases, with New South Wales and Victoria buying more than 10 million test kits combined.

BLOOMBERG