The federal health department has categorically denied claims the Commonwealth was requisitioning rapid antigen tests from businesses.
It comes as Health Minister Greg Hunt revealed he had asked the consumer watchdog to investigate claims made by businesses of testing kits being seized.
A health department spokesman said the claims were also made about at least one state government, but denied the allegations made by businesses were true.
"Supplies of RAT kits are not being redirected to the Commonwealth, and at no time has the department sought to place itself ahead of other commercial and retail entities," the spokesman said.
"Where such claims have been made, the department has written to the relevant retailer to reassure them that this is not the case."
The department said it was working closely with the Australian Competition and Consumer Commission on the issue.
Mr Hunt indicated that many businesses were lying and suppliers had overcommitted and were unable to deliver the rapid tests.
"(Requisitioning tests) is not something we're doing, it's not something we're going to do," he told reporters in Canberra on Thursday.
The head of the Therapeutic Goods Administration John Skerritt said the expanded use of rapid antigen tests had brought about issues of companies making false claims about approval.
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