BackgroundWe compared the health and economic consequences for the State of Victoria, Australia, of four COVID-19 strategies: aggressive and moderate elimination, tight suppression (aiming for 1 to 5 cases per million per day) and loose suppression (5 to 25 cases per million per day). The strategies shifted up and down through five levels of policy stringency based on the number of cases per day, for one year.MethodsAn agent-based model (ABM) generated 100 runs of daily SARS-CoV-2 case numbers, that then fed into a proportional multistate lifetable to estimate health adjusted life years (HALYs) and costs. We used a net monetary benefit approach to estimate the optimal strategy.FindingsAggressive elimination resulted in the highest percentage of days with the lowest level of restrictions (median 31.7%, 90% simulation interval 6.6% to 64.4%). However, days in hard lockdown were similar across all four strategies (medians 27.5% to 36.1%).HALY losses (compared to a no-COVID-19 scenario) were similar for moderate elimination (286, 219 to 389) and moderate elimination (314, 228 to 413), and nearly eight and 40-times higher for tight and loose suppression. The median GDP loss was least for moderate elimination ($US41.7 billion, $29.0 to $63.6 billion), but there was substantial overlap in simulation intervals between the four strategies.From a health system perspective aggressive elimination was optimal in 64% of simulations above a willingness to pay of $15,000 per HALY, followed by moderate elimination in 35% of simulations. Moderate elimination was optimal from a partial societal perspective in half the simulations followed by aggressive elimination in a quarter.Shortening the pandemic duration to 6 months saw loose suppression become preferable under a partial societal perspective.InterpretationFor this single high-income jurisdiction, elimination strategies were preferable over a 1-year pandemic duration.FundingAnonymous philanthropic donation to the University of Melbourne.Research in contextEvidence before this studyThere have been varying approaches across countries and jurisdictions as to how to manage the COVID-19 pandemic, ranging from elimination of community transmission (e.g. Australasia, Taiwan and other East Asian and Pacific Island countries) to loose suppression or mitigation that attempts to keep the case numbers within health services capacity (e.g. Sweden, USA, India, UK and some continental European countries). The best or optimal approach is unknown, and involves an invidious balancing of health, social and economic consequences of the pandemic. But it has become apparent that in high income countries using loose suppression that one still has to use lock-downs from time to time to keep case numbers within health service capacity, raising the question as to what is the best for the economy – attempting elimination, tight suppression or loose suppression?One approach to integrating the health and economic consequences is cost effectiveness analysis, but to date such approaches have mainly been focused on SARS-CoV-2 treatments rather than societal intervention, and have not incorporated a counterfactual approach to compare the same jurisdiction across the many (stochastically varying) realizations for different policy options.Added value of this studyThis study uses one high-income jurisdiction, the state of Victoria in Australia as it exited its second wave, to estimate the health and economic consequences of four policy options: aggressive and moderate elimination strategies, and tight and loose suppression strategies. The modeling is done in two steps: first, an agent-based model to simulate 100 possible trajectories of daily SARS-CoV-2 infections over one year for each of the four policy options; and second, an integrated epidemiological and economic model that estimates health and economic costs. Whilst there is considerable uncertainty in outcomes for all of the four policy options, the two elimination options are usually optimal from both a health system and a partial societal (health expenditure plus GDP cost) perspective. However, if the remaining duration of the pandemic is lessened from 1 year to half a year (as may be the case with vaccine roll-outs), loose suppression becomes more favorable – suggesting countries with already high infection rates ‘ride it out’ till vaccination coverage is adequate.