Australia's healthcare system is set to receive a funding boost today as health authorities warn several states have not yet reached their Peak of Omicron cases.

Federal Health Minister Greg Hunt is expected to announce $24 million of funding in a new boost to the health system today, which would provide free rapid antigen tests to doctors who see patients face-to-face and PPE for healthcare workers.

Two people in their 20s died with COVID-19 Yesterday in New South Wales and Queensland as tens of thousands of coronavirus continue to be recorded across the country.

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The Queensland Government remains confident that pop-up hospitals will not be required and the looming peak in COVID-19 cases can be managed between public and private facilities.

NSW is slated to reach its peak of Omicron infections in the next week or two, infectious diseases paediatrician Robert Booy told Today.

"We are getting close to the top of our swing in terms of numbers in NSW and Victoria, we will probably peak within the next one to two weeks," he said yesterday.

"But the hospitalisations will peak in February because they come about two weeks after cases."

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Victoria surpassed 1000 hospitalisations yesterday for the first time since the pandemic began.

Acting Premier James Merlino yesterday announced two Melbourne quarantine hotels would be converted into medihotels to battle the rising numbers of hospitalisations in the state.

The Pullman Melbourne on Swanston Street and the Mantra Epping will be used as the medihotels, with a capacity to provide care to over 300 patients.