Australians finding themselves in lockdown due to COVID-19 will get access to support in the second week of restrictions under a plan Scott Morrison will take to the national cabinet on Friday.
The decision came as Victorian officials considered a fifth lockdown, which would put the nation's two biggest states in quarantine.
Mr Morrison said he was not aware what Victorian planned to do, but it is understood a lockdown could be be reinstated from midnight.
"We don't want to see these lockdowns. We prefer they not happen," the prime minister told reporters on Thursday.
"As we're learning with the Delta strain, it's highly infectious and it's important we understand if these things become necessary, then Australians and Australian businesses have the confidence about what the arrangements will be."
Under Mr Morrison's proposal, support payments of either $375 or $600 a week - depending on work hours lost - would start from the second week of a lockdown but be paid in arrears, and the liquid assets test would be immediately waived.
Victoria recorded two new cases on Thursday in addition to 10 additional cases recorded in the previous 24 hours.
The outbreak was imported by Sydney removalists as NSW grapples with an outbreak from a driver who transported international flight crew.
NSW reported 65 new cases, with greater Sydney's lockdown to continue at least until July 30.
As state premiers push for additional vaccine access, Mr Morrison has continued to blame the troubled rollout on Australia's expert medical panel.
"We have had a cautious approach in Australia on medical advice," he told ABC radio.
"We wanted to follow all the usual steps and processes to ensure the vaccines were appropriately qualified before they were used in the community."
Mr Morrison said the initial plan was to rely on AstraZeneca vaccines that could be manufactured in Australia.
Earlier this year, the Australian Technical Advisory Group on Immunisation recommended AstraZeneca vaccines be reserved for people aged 50 plus and then over 60s.
This was because of the risk of rare but potentially fatal blood clots linked to AstraZeneca.
But the Sydney outbreak led ATAGI to update its advice again, saying younger people in greater Sydney should consider getting the AstraZeneca jab because of Pfizer shortages.
The recommended wait time between AstraZeneca doses was also cut from from 12 weeks to between four and eight.
"We received medical advice that has changed on two occasions and that medical advice, as I made very clear to ATAGI at the time, was based on an assumption cases would remain low," Mr Morrison said.
"The balance of risk assessment were based on low case numbers in Australia.
"It has created some confusion in the public."
© AAP 2021