The decision to remove the requirement for household contacts of people with COVID-19 to isolate will likely provide an income bump to many businesses and the government.
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However, two University of Wollongong health researchers say the move could end up costing more in the long term, as it puts increased strain on the health system.
When the lifting of isolation rules was announced last week, Director of the Australian Health Services Research Institute at UOW Professor Kathy Eagar tweeted that the "government has now officially transferred all financial risk onto business.
"Government will make short term savings," she wrote. "But will pay in the long run for many more ED and admitted patients in our public hospitals."
UOW health researcher Associate Professor Chris Degeling agreed, saying there was likely to be an increase in the number of COVID-19 cases in the short term.
Due to high vaccination rates, and an increased immunity due to the number of people who have had COVID-19 Prof Degeling said he did not expect the same spike as in the Omicron waves, but that there would be a "short bump" in cases.
"If we do have more people interacting and some of them have COVID, then more people will catch it, and a percentage of those will need help from the health system and that will have economic flow through effects," he said.
He said the government was trying to find an "acceptable level of risk", and balance the needs of the health system with economic requirements.
"I can completely understand why nurses and doctors and cleaners and everybody who works around and in hospitals are thinking 'here we go again' because ultimately we are relying them to their jobs to allow us to do other things," he said.
"There are more people who need the health system than normal - but there's pressure from business and the forces in our society who need workers for a range of reasons - and obviously the government needs tax incomes, so there must be some point or another that swings back towards letting the health system absorb more."
"Obviously there's going to be more people requiring the health system and that costs money, and those people cost employers money because they are on sick leave.
"No matter what you do, there are only tragic choices, you cannot have a clear, straightforward solution which doesn't place burdens or costs on somebody or some part of society."
He said fewer people would catch the virus if they followed the government's advice for close contacts, directing them to work from home where possible, wear masks and do daily RATs.
"I think there will probably be less compliance than you would hope, but more than you expect," he said.
"I think it's reasonable for people to be cautious.
"I'm wearing a mask more often than I would have without those mandates and restrictions because I don't want to catch covid and you do what you need to do to keep yourself, your family and others safe."
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