Paid pandemic leave for COVID-19 positive workers will be extended indefinitely, national cabinet has agreed.
The payments for infected people while they are away from work, which were set to expire at the end of the month, will remain in place as long as mandatory isolation periods are in effect.
The extension comes following the latest national cabinet meeting between Prime Minister Anthony Albanese and state and territory leaders on Wednesday.
Mr Albanese said the payments would be shared 50-50 between the Commonwealth and states and territories.
"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 and that is important," Mr Albanese told reporters in Sydney on Wednesday.
"The government has a responsibility to provide support during that period for the appropriate period which is designated."
So far $2.2 billion have been paid out in pandemic leave since the scheme was first implemented.
The pandemic leave was due to expire at the beginning of July but was extended to September following backlash and a rise in COVID cases.
Mr Albanese said isolation periods of five days for COVID-19 cases and seven days for workers in high-risk settings will remain in place.
The prime minister said a decision to lower isolation period requirements was not discussed in detail at the national cabinet meeting, but was likely to be discussed when leaders met in person at the end of the month.
"What we are seeing is gradually a move towards COVID being treated like other health issues," he said.