Australia has swung into a new pandemic "protect" phase, as the number of swine flu cases soars past 2000.
The new phase will focus antiviral drugs and medical attention on those deemed most at risk, including pregnant women, the morbidly obese and those with respiratory conditions such as asthma.
People who live with or have come into contact with swine flu patients will no longer be quarantined.
The federal health department's official website says there are now 2112 confirmed cases of swine flu in Australia.
Victoria has 1230 cases, New South Wales 313, Queensland 194, Western Australia 117, South Australia 107, the ACT 75, Tasmania 41 and the Northern Territory 35.
Nine people with swine flu are currently in hospital, including on in South Australia.
Federal Health Minister Nicola Roxon said the states and territories should all have moved to the new pandemic level by next Friday, but South Australia and Western Australia will progress to the protect phase immediately.
Ms Roxon said schools closed due to swine flu would be reopened, and students who had returned from areas affected by the disease would be allowed to attend classes.
"Excluding well children from school if they're in an area of sustained community transmission is now a less practical or useful measure," she told reporters in Canberra.
"Children though who are unwell, like adults who are unwell, will be urged to stay at home until they recover in order to protect their classmates."
Only people with moderate or severe symptoms, or those in vulnerable groups, will have access to the national and state stockpiles of Tamiflu.
Doctors will not prescribe Tamiflu to otherwise healthy people who have mild cases of the virus, nor will they order pathology tests for all potential cases.
People with mild symptoms will be asked to voluntarily quarantine themselves and take over-the-counter medication for relief.
Chief medical officer Jim Bishop said it was fortunate that most people with swine flu experienced mild illness.
"The fact is that everyone ... with mild illness will get over this very quickly and with a short illness and that will happen whether antivirals are used or not," he said.
Measures at the nation's borders will also be relaxed. Airlines will still be required to report sick travellers on international flights but thermal scanners will no longer be used.
Ms Roxon said that under the new phase, large public gatherings, including sporting events, should proceed as normal.
"However, people who are vulnerable to serious complications from flu should reconsider their attendance at such events, as contact with large numbers of people can increase the risk that they will come into contact with the infection," she said.
Modelling had shown that had the government not put any public health measures in place to deal with swine flu, it is estimated 6000 Australians would have died from the virus and up to 80,000 would be hospitalised, Ms Roxon said.
Some 4.3 million people, or one fifth of the population, would be infected with the influenza A(H1N1) virus, compared with a seasonal flu infection rate of five to 15 per cent.
Ms Roxon said she felt for the members of Australia's U21s lacrosse team - some of whom live in her Victorian electorate - who are locked up in their South Korean hotel rooms due to swine flu concerns.
But she said travellers must respect the laws and health requirements of other countries.
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