Prime Minister Anthony Albanese confirms paid pandemic leave will remain as long as mandatory isolation is in place

But Australians will only be able to receive three payments in a six month period, as the Prime Minister reveals details on fraud associated with the scheme.

Mr Albanese had been under pressure from state and territory leaders, with the payments set to expire at the end of the month.

But speaking after a brief meeting of national cabinet on Wednesday, he revealed the scheme would remain while all states and territories required COVID-19 patients to isolate.

"The principle essentially agreed to by all First Ministers is that while the government requires mandated isolation, the government has a responsibility to provide support during that period," he said.

"We remain obviously of the view that if people are sick whether from COVID, or from other health issues, they should not be at work. That is important."

The states and Commonwealth also agreed to continue to evenly split the scheme, which has cost more than $2.2 billion to date, in a meeting lasting under half an hour.

Mr Albanese would not be drawn on when he believed quarantine requirements should be scrapped entirely, as they have been in the UK, saying he would "take advice" when national cabinet meets on September 30.

"There are different arrangements in place in countries, but what we are seeing is gradually a move towards COVID being treated like other health issues," he said.

"As to changes, we will take advice on that and we will make a decision at an appropriate time."

National cabinet this month tinkered with quarantine requirements, with COVID-19 patients now able to leave isolation after five days provided they were no longer exhibiting symptoms, and did not work in high-risk settings.

Those isolating for five days were eligible for a $540 payment, with people forced indoors for a week eligible for $750.

Australians will only be eligible for three payments in a six month period, apart from in "extraordinary circumstances", Mr Albanese said.

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The Prime Minister said Services Australia data last month showed 2.6 per cent of claims triggered real-time fraud checks, roughly half of which were subsequently rejected.

Federal Labor had faced pressure from ACT Chief Minister Andrew Barr, NSW Premier Dominic Perrottet and Victorian Premier Daniel Andrews to maintain the scheme beyond the end of the month.

Premier Andrews warned withdrawing support while maintaining mandatory isolation would force Australians to "choose between feeding their kids and stopping infection".

Mr Albanese flagged his intention to back an extension the day before Wednesday's meeting.

The Prime Minister initially resisted extending the payments when they expired in June, but reversed course in July as COVID-19 cases surged.

More to come.

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