Australia has reported its lowest daily Covid-19 deaths in two weeks while cases continued to trend lower as authorities braced for staff shortages in schools due to likely outbreaks as thousands of students return after their summer break.

Most states will go through a staggered school reopening exercise this week as Australia battles the worst outbreak of the pandemic, with the fast-moving Omicron coronavirus variant spiralling cases to record levels, according to a Reuters report.

Masks are mandatory indoors for older children and millions of at-home antigen tests, still not readily available in many stores, are being rolled out to families free of cost, with children asked to undergo Covid-19 tests twice a week.