Rapid antigen testing (RAT) will be introduced at Mercy Place in coming days and could in the future help control outbreaks in schools and prevent testing clinics becoming overwhelmed.
The technology is being deployed to the aged care facility as it battles to contain a COVID outbreak.
"This additional measure adds an extra layer of protection in the early detection of transmission in our home," a spokeswoman said.
Rapid antigen testing is a measure many workplaces are investigating, Business NSW regional manager for Riverina-Murray Anthony McFarlane said, as it could minimise transmission and subsequent disruptions to business.
Mr McFarlane said under NSW health guidelines, casual contacts who have a rapid antigen test each day until seven days after their last contact with a COVID positive person do not need to have a regular PCR test or isolate.
This means, Mr McFarlane said, businesses could get their staff back to work sooner after a causal COVID contact than relying on PCR testing.
"The problem businesses are telling me is they're having a great degree of difficulty sourcing testing kits," he said.
"Especially for businesses that are in peak season it makes a lot of sense to look at putting a [testing] regime in place."
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Already large businesses like Woolworths are using rapid antigen testing at distribution centers for surveillance testing.
This allows the company to identify any positive cases ahead of them attending work, possibly preventing a spread of the infection within the workplace and cutting down the number of staff who need to isolate.
"Anything that reduces disruptions is a good thing, Woolworths has shown how to integrate systems to avoid the closure of their distribution centres, that's going to become more important," he said.
"It's a new world, now it's about how do we minimise disruption if we're trying to stay open."
Mr McFarlane said it was logical to introduce rapid antigen testing at large businesses, but he believes the government needs to have a role in sourcing more tests for sale and possibly even helping small businesses cover the cost of kits.
The use of rapid antigen testing could also take pressure off border COVID testing clinics, which struggled to keep up with mass-demand and repeatedly reached capacity in the morning earlier this week.
Member for Farrer Sussan Ley has repeatedly called for rapid antigen testing to be used on the Border.
"Health workers at our local testing sites are doing an amazing job, with the added hours and staff certainly cutting the afternoon wait times through the week," she said.
"We could take further pressure off with the use of rapid testing, which will also get employees back to work quicker and return students to class.
"The reopening roadmap actually expects COVID cases to emerge - if the demand for rapid testing on the border is here, then I'll keep pushing for it to become more widely available."
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