Premier Peter Gutwein is keen to allow dancing and vertical drinking but says public health wants more COVID-19 testing before restrictions are lifted.
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Doctors support the public health restrictions but Independent Clark MHA Madeleine Ogilvie says it's time to align Tasmanian rules with those interstate.
Mr Gutwein was briefed by public health on Monday which is closely examining the restrictions.
"We've taken a sensible, responsible glide path, and we will continue to do the same in terms of vertical drinking and dancing," he said.
"It's important in Tasmania, that we continue to keep our testing rates high - and that is the canary in the coal mine.
"That's the way that we understand whether or not this virus is in our community and I would implore Tasmanians, if you've got any form of symptom, if you've got the slightest sniffle, get tested.
"Let's get our testing rates up and that will provide us with more confidence as we move forward."
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Testing in Tasmania has dropped to half the rate of some of the major states, from about 500 a day to as low as 200 to 300.
Mr Gutwein urged Tasmanians to continue to follow the rules and to get tested and not go to work if they had any symptoms.
"The confidence that we need moving forward is to ensure that we can start to see our testing rates starting to trend back up to where they need to be," he said.
Australian Medical Association president, Dr Helen McArdle said Tasmanians needed to remain on their guard.
"The pandemic is not over and COVID-19 remains a real risk, especially as we are now accepting people arriving from overseas into Tasmania to quarantine, who may have the COVID virus,"Dr McArdle said.
"We need to guard as best we can against complacency in our community.
"Social distancing and hand sanitising remain our best defence should the virus enter the community.
"The reality is that vertical drinking and dancing make maintaining social distancing harder to achieve in social environments where large groups of people gather such as in pubs or nightclubs."
Ms Ogilvie said if Victorian nightclubs allowed dancing and drinking standing up, there was no reason Tasmania should not follow suit.
"You are able to stand at the public bar in Melbourne. Why not in Tasmania," Ms Ogilvie said.
"It is sensible to align our local rules with what's happening interstate.
"Dancing is healthy and good for our mental health.
"Tasmanians have done the right thing, we've followed the rules, surely we can be allowed to see off 2020 with a goodbye dance."