Australia has reported fewer Covid-19 deaths, a day after recording a pandemic high, while hospital cases remained steady, raising hopes the country's worst outbreak may have peaked.

Officials reported a total of 59 deaths, down from a pandemic peak of 87 on Wednesday, with just two states still to report figures, according to Reuters.

Hospitalisations have remained steady at around 5,000 for the last few days, peaking at just under 5,400 on Tuesday, with admissions falling for the second straight day in New South Wales, the worst-affected state.

Australia's daily new cases have dropped to around 46,000, well down from a peak of around 150,000 two weeks ago.