Scott Morrison has ruled out enlisting Tabcorp to run a lottery for people who are vaccinated against coronavirus.
The prime minister did not dispute reports senior government officials sought advice from the gambling giant about the design of a lottery.
"We are not proceeding with any arrangement like that with Tabcorp," he told parliament on Monday.
Labor has called for every person who receives both doses by December to be handed one-off $300 payments.
Mr Morrison has fiercely opposed the $6 billion plan and argues offering people extra motivation to be immunised is not immediately necessary.
"The government has got no issues with incentives - what we have a problem with is bad policy."
Defence Minister Peter Dutton last month expressed support for a lottery but noted Tabcorp had pointed out it would need regulatory approval and someone to pay for it.
Mr Morrison had been open to the idea, while vaccine rollout commander John Frewen last week raised a lottery after the opposition sparked debate over incentives.
Lotteries have been used across the United States with prizes of up to $1 million.
Australians could in coming weeks have a third coronavirus vaccine available if Moderna receives approval from the medicines regulator.
The company is also considering using Australia as a trial country for children as young as six months.
Finance Minister Simon Birmingham said the government ultimately wanted people of all ages included in the rollout.
"Moderna's looking at a global trial, Australia may be part of that, but that will be subject to all of the technical and scientific advice that needs to be provided," he told Sky News on Monday.
The Therapeutic Goods Administration is expected to approve Moderna for over-16s in coming weeks, with around one million doses slated to arrive next month.
That will ramp up to three million in October, while bigger Pfizer shipments are also on the way with two million doses a week set to land from September.
Labor's health spokesman Mark Butler said other countries started using Moderna before the government entered talks with the company.
"Australia has the lowest vaccination rate in the developed world, all because Scott Morrison has been so slow to act in procuring deals with Pfizer and Moderna," he told reporters in Adelaide.
Australia has fully vaccinated 22.5 per cent of people aged 16 and over with 13.7 million doses administered since February.
The coronavirus crisis in NSW continues with 283 new local infections and one death reported on Monday.
There are 70 people in intensive care nationally with 67 of those in NSW.
Tamworth will be locked down after an infectious person visited multiple places in the regional centre.
Victoria recorded 11 new cases but none in regional parts of the state, which will be released from lockdown on Tuesday.
Cairns is on high alert for new cases after starting a three-day lockdown because of an infected taxi driver.
© AAP 2021