Two Defence members at Latchford Barracks have tested positive for COVID-19.
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A spokeswoman said the base had been operating in accordance with government protocols.
"Defence has taken a precautionary measure of restricting business at Latchford Barracks until such time that all close contacts are identified and the initial results of close contacts have been received," she said.
"Defence is working closely with the Albury-Wodonga Local Public Health Unit to manage the current cases and will ensure that staff and trainees in the Albury-Wodonga region continue to comply with the appropriate public health advice."
Meanwhile, further positive cases are expected at Mercy Place Albury following the death of a resident who was receiving palliative care.
Murrumbidgee Local Health District public health director Tracey Oakman extended her condolences to the family involved and said out of respect for them, she would not be providing further details of the case in which an elderly person there died.
"We don't have an answer for that question yet (of how COVID got into Mercy)," she said.
"We'll have to test contacts and so forth to determine if one of those was positive, and therefore may have been the source of the original infection."
Ms Oakman said there were now four positive cases linked to Mercy.
"There are further cases that have come in overnight that won't be in today's data," she said.
"We can expect more cases.
"We have tested all the residents and we're meeting today to arrange a testing regime for all the staff."
Ms Oakman said there were no other high-risk settings MLHD was managing, however some GP clinics have been visited by cases.
They will not be listed as public exposure sites due to the ability to contact-trace.
Ms Oakman said public health units were "not able to call all businesses" that may be the site of casual exposure, but MLHD continued to work with venues that have a higher risk exposure site.