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Vaccination and testing of all quarantine workers will also be made mandatory, including those involved in transporting people to quarantine.
The states and territories will be in charge of the program and no timeframe has been set for its completion.
National cabinet also agreed to compulsory post-quarantine testing for returned travellers, which must occur two to three days after they leave.
And in a bid to encourage broader vaccination, the federal government will provide a no fault indemnity scheme for GPs who administer COVID-19 vaccines.