At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 43.50 points or 0.66 percent at 6,643.10, while the broader All Ordinaries index was up 47.10 points or 0.69 percent at 6,892.60.
The price of iron ore fell around 7 percent, dragging Australia's mining giants lower by the end of the trade.
All other sectors were firmly higher following confirmation earlier in the day of what COVID-19 restrictions would be in Sydney over Christmas.
The city recorded just eight locally acquired cases of COVID-19 on Wednesday, easing fears over the possibility of a wider outbreak.
In the financial space, the big banks lifted with Commonwealth Bank up (0.92 percent), ANZ up (0.83 percent), National Australia Bank up (0.22 percent) and Westpac Bank unchanged (0 percent).
Mining stocks sank with Rio Tinto down (0.49 percent), BHP down (1.03 percent), Fortescue Metals down (0.04 percent) and goldminer Newcrest down (2.13 percent).
The country's oil and gas producers lifted with Oil Search up (0.29 percent), Santos up (1.64 percent) and Woodside Petroleum up (1.12 percent).
Australia's largest supermarkets rallied with Coles up (0.66 percent), and Woolworths up (0.99 percent).
Meanwhile telecommunications giant Telstra lifted (0.33 percent), the national carrier Qantas surged (2.29 percent) and biomedical firm CSL bounced (0.29 percent).
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