Scott Morrison is set to announce new financial support for workers after a four-week lockdown extension in Sydney and surrounds was confirmed.
The prime minister is meeting with ministers in charge of federal purse strings on Wednesday to discuss extra assistance.
But calls from the NSW coalition government and federal Labor opposition to revive JobKeeper wage subsidies have been rejected.
Finance Minister Simon Birmingham said coronavirus payments of up to $600 a week were suitable for the current situation.
"Under the Delta strain we're dealing with localised lockdowns," he told the ABC.
"That's why the COVID disaster payment can apply in those local settings. It has a broader reach particularly in relation to certain casual employees."
People receiving welfare and those outside recognised coronavirus hotspots are not eligible for the payments, which are calculated on hours of work lost.
Senator Birmingham indicated the scheme would be further refined as the pandemic unfolded.
There were 177 new local cases in NSW on Wednesday, another outbreak-high daily tally.
Premier Gladys Berejiklian announced the lockdown across Sydney and surrounding regional areas would continue until at least the end of next month.
NSW Treasurer Dominic Perrottet failed to convince the federal government JobKeeper should be reinstated but confirmed the disaster payment scheme would be expanded.
The Commonwealth also agreed to help with an expansion of the state's business support program, which is now available to businesses turning over up to $250 million.
"These businesses are the ones we all need still standing to drive the recovery on the other side," the prime minister said.
Victoria and the Morrison government will also split the cost of a $400 million business package.
That includes support for sectors under strain from capacity limits, small businesses and a specialised fund for hospitality.
"With this funding we'll continue driving jobs and economic recovery here in Victoria, and for the nation," Victorian Premier Daniel Andrews said.
There was one additional case of coronavirus in Melbourne on top of 10 local infections that were in isolation as the state eased its lockdown.
South Australia's snap shutdown has also ended after a Delta outbreak was contained.
One new local infection was detected in Queensland along with 19 cases on a ship offshore.
Australia's sluggish vaccination rate continues to creep higher with 16.7 per cent of people aged 16 and over now fully immunised.
