Prime Minister Anthony Albanese reveals national cabinet has agreed to slash COVID-19 isolation to five days

The Prime Minister on Wednesday announced Australians who test positive to COVID-19 will only be forced to isolate for five days from September 9, provided they are no longer exhibiting symptoms.

But whether they will receive support payments beyond next month remains unclear, with Mr Albanese flagging crunch talks in coming weeks.

Speaking after meeting state and territory leaders in Sydney, the Prime Minister confirmed workers in high-risk settings, like the aged care and disability care sectors, will still be forced to isolate for a week after a positive test.

"I believe, and first ministers agreed, that on the weight of evidence, this was a proportionate response at this point in the pandemic," Mr Albanese said.

"Clearly if you have symptoms, we're all hoping you stay home. We want people to act responsibly.

"[But] COVID is likely to be around for a considerable period of time, and we need to respond appropriately to it."

Paid pandemic leave will be altered to reflect shorter isolation periods, while mask mandates on domestic flights will be scrapped on September 9.

NSW Premier Dominic Perrottet has long pushed for a cut to isolation, but was overruled last month as Australia grappled with a surge driven by the highly-infectious Omicron strain.

ACT Chief Minister Andrew Barr told The Canberra Times the shift reflected a "weight of evidence" and a range of "competing priorities".

"It was an engaging and respectful discussion on the next steps in pandemic management," he said.

"I was pleased that the transition is being undertaken in a measured way, after the winter peak and with plenty of notice being given."

Mr Albanese insisted no premier or chief minister had pushed for Australia to follow the UK by scrapping isolation rules entirely.

He said the five-day rule would be reassessed at "some time", but did not provide a timeframe.

"Gradually, as we come to deal with COVID over a long period of time, we need to ensure the mechanisms ... put in place by government that impose restrictions on people [are] reassessed at an appropriate time," he said.

Premier Perrottet and Victorian counterpart Daniel Andrews on Tuesday called for paid pandemic leave to remain in place for as long as COVID-19 patients were forced into isolation.

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But with the payments set to expire at the end of September, Wednesday's announcement meant those who contract the virus late next month could be required to isolate without government support.

Mr Barr welcomed the Prime Minister's pledge to meet "in a couple of weeks" for discussions on whether the payments would be extended.

"We wanted time, as is appropriate, to consult about what we do with paid pandemic leave," Mr Albanese said.

The Prime Minister said maintaining isolation at seven days for workers in high-risk settings was on the advice of the acting chief medical officer.

"They are areas where you have people who are particularly vulnerable. We want to make sure that those sections which are vulnerable are particularly looked after," he said.