Health Minister Greg Hunt has likened claims rapid antigen tests were being requisitioned to the Commonwealth to a scam, as police lead a new crackdown on price gouging for the tests.
Mr Hunt slapped down allegations rapid tests were being diverted from the Queensland government or from businesses.
"Everybody knew that the original claim by the Queensland government was false," Mr Hunt told ABC radio on Friday.
"It's extraordinary that a minister in any government would fall for a scam like that. Either they have not done the work to verify that it is false, or it is deliberately made as a statement."
The federal government has referred the claims to the consumer watchdog to investigate.
Mr Hunt said many businesses making the requisitioning claims had over-promised on supply.
"I understand Queensland was one of the very last to place their orders (for rapid tests), and they need to be careful about making sure they're dealing with reputable suppliers," he said.
"I am astonished that the Queensland government would peddle a fake, a forgery, a lie, a fix. It's extraordinary."
Queensland Premier Annastacia Palaszczuk said government officials were working with the Commonwealth to ensure companies seeking authorisation to sell the testing kits got proper approval.
She indicated the process would accelerate the time for approvals.
It comes after the Australian Federal Police launched a specialist taskforce to investigate claims of price gouging for the rapid tests.
The taskforce was set up after the NSW and Queensland governments referred the issue to the Australian Competition and Consumer Commission.
Retailers caught price gouging on the tests have been warned they will face five years in prison.
AFP assistant commissioner of the crime command, Nigel Ryan, said there would be a zero-tolerance approach to retailers.
"The AFP will use its full powers to crack down on RAT price gouging," he said.
"Not only is price gouging of RATs unethical but it is illegal, and the AFP will use its significant resources to ensure it protects the public from the unlawful greed of others."
Charges would be laid for businesses and individuals if the rapid tests are sold for more than 20 per cent of their original retail price.
Strike teams will have the power to force people caught price gouging to surrender the rapid tests. They would instead be used as part of the national medical stockpile.
The consumer watchdog said it had heard reports of rapid tests costing between $20 and $30 for a single test, despite wholesale costs ranging up to $11.95. In one instance, a test was sold for more than $70.
The ACCC have received more than 1800 reports of gouging across the country, as widespread shortages of rapid antigen tests remain due to surging cases of the Omicron variant.
