Australia has reported its biggest pandemic caseload with a runaway Omicron outbreak driving up hospitalisation rates as the surge put severe strain on supply chains forcing authorities to ease quarantine rules for more workers.

More than 147,000 new cases have been recorded so far on Thursday in Australia, with about 92,000 in the most populous state of New South Wales (NSW), although that includes a backlog of positive at-home results dating back to the beginning of January.

Net new hospital admissions and people admitted to intensive care are at their highest in the pandemic but authorities have said the health systems can cope with the rising cases, Reuters reported.

A total of 53 new deaths have been reported so far, with NSW suffering its deadliest day of the pandemic with 22 deaths.