International travellers will have the option of showing a negative test result from a rapid antigen test with 24 hours of the flight departure in a relaxing of Australia's pandemic restrictions.
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It comes after the government this week introduced incentives for travellers to reconsider Australia for study or work by rebating visa application fees in an attempt to address the workforce shortage.
Health Minister Greg Hunt announced on Friday that requirements for pre-departure testing would allow both a rapid test within 24 hours, or the nucleic acid amplification or PCR tests within three days. The changes will come into effect from 1am on Sunday January 23.
The PCR test remains the "gold standard", Mr Hunt said in a statement, but the change was consistent with moves within Australia's health systems to accept the rapid tests for diagnostic purposes.
The time between receiving a positive test result and being able to be cleared for travel to Australia will be reduced from 14 to seven days, he added.
"This will reduce wait times for travellers who contract COVID-19 overseas to return to Australia in line with the new domestic isolation requirements."
Existing mitigations on flights to Australia will remain, such as wearing of masks during the flight and following directions of state and territory governments regarding quarantine and on-arrival testing.
Business groups and airports have applied pressure to the government to end pre-departure testing for all fully vaccinated international travellers and open the border to tourists and business arrivals.
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South Australia, Queensland and Tasmania have dropped testing requirements for the fully vaccinated arriving from interstate, as COVID-19 infections climb following domestic border reopenings.
Melbourne Airport urged the Commonwealth to do the same for double-jabbed overseas travellers.
"The fear of being stuck overseas because of a positive test result is a major deterrent for many Australians considering an overseas holiday, and it's clear this requirement now provides no public health benefit and serves no useful purpose," Melbourne Airport chief of aviation Lorie Argus said in a statement on Wednesday.
Nine nations across the globe are currently exempt from Australia's pre-flight testing requirement, while travellers coming from a dozen more nations have a slightly longer 96-hour window.
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