An interstate travel bubble could be set up between select states in time for the July school holidays.
Canberra, Tasmania and South Australia are reportedly considering unrestricted travel between their borders as early as next month.
South Australia Premier Steven Marshall hinted he would like to see residents move freely between the majority of states, Nine News reported.
Canberra, Tasmania (Wineglass Bay pictured) and South Australia are reportedly in discussions to establish a travel bubble in time for the July school holidays
South Australia Premier Steven Marshall hinted he would also like to include the Northern Territory, Western Australia (Lucky Bay pictured) and potentially Queensland
The Premier is reportedly hoping for a travel bubble between Tasmania, the ACT, the Northern Territory, Western Australia and potentially Queensland.
Borders are set to be open in some form by the time school holidays commence in the ACT, NSW, SA, TAS and WA on July 3.
Tasmania Premier Peter Gutwein said the possibility of a travel bubble had been 'discussed'.
Mr Gutwein told reporters on Wednesday: 'Obviously we would like to open our borders when it is safe to do so.'
'It may be that there is an opportunity to step back into that with states and territories that have got a lower instance of the virus than other states,' he said.
New South Wales, Victoria and Queensland were the only states that recorded new coronavirus cases on Tuesday.
Australia has recorded 7221 cases overall with only 494 still active and three people in intensive care.
The border news comes amid ongoing talks to establish a trans-Tasman bubble between New Zealand and Australia.
Borders are set to be open in some form by the beginning of school holidays on July 3. Pictured: Uluru in the Northern Territory
Prime Minister Scott Morrison has been 'regularly' discussing resuming travel across the ditch with New Zealand leader Jacinda Ardern in a move that would boost both countries' economies and create jobs.
He said the plan will go ahead regardless of the state borders in place in all jurisdictions except New South Wales and Victoria.
'I hope in Sydney and Melbourne you can get to the states and territories and Auckland at the same time but we'll see what happens,' Mr Morrison said.
The Prime Minister said no date has been decided.
Ms Ardern has suggested that the bubble is likely to be in place by September.
'September is realistic, but I haven't given specifics around what date precisely,' Ms Ardern said on Thursday.
'Needless to say, Prime Minister Morrison and I have been very, very keen to see us moving towards an opening up about borders as soon as it's safe to do so.'
Prime Minister Scott Morrison noted residents in New South Wales and Victoria may be able to visit New Zealand sooner than other states in Australia. Pictured: Great Barrier Reef in QLD