Anthony Albanese will get together with state and territory leaders on Monday in response to a surge in infections across the country.
The meeting will take place with the government under pressure to reinstate the $750 emergency isolation payments for employees unable to work after coming down with the virus.
The scheme concluded at the end of June, but the prime minister said the payments would not return due to budget pressures.
He said many employees would already be receiving payments from their workplace should they be forced to isolate.
"The idea no one is getting sick leave at the moment is not the case," he told reporters on Friday.
"Good employers are recognising people are continuing to work from home while they have COVID and receiving payments through that.
"The (pandemic leave) payments were put in place by the former government with an end date, a decision they made at the time."
Ahead of the national cabinet meeting, the prime minister said he was confident of leaders being able to work together constructively amid the rise in cases.
"Everyone has been worried about the pandemic over the last couple of years," he said.
"We'll deal with these issues. We'll deal with them in a practical way."
Assistant Treasurer Stephen Jones said the government was working closely with states and territories to provide support, but indicated the pandemic leave scheme had to be wound back.
"We'll have a respectful conversation with the territory and state leaders," he said.
"We're going to try and solve the issues that are pressing upon Australian workers and businesses.
"We'll be spending more money soon on servicing the debt than we will be spending on our biggest healthcare expenditures and that's not sustainable, we can't keep adding to the debt we've inherited."
Queensland Premier Annastacia Palaszczuk on Thursday said she was keen to discuss with her counterparts the pressure on the healthcare system from rising cases and hospitalisations.
Ms Palaszczuk said leaders need to determine how people taking time off work while sick with new virus sub-variants could be supported.
Existing financial supports from state governments may not be enough for some people, she said.
"We are seeing some people being hit harder, so that means that they are off work for longer than the seven days (of isolation)," Ms Palaszczuk told the Seven Network on Thursday.
"We need to look at those particular examples."
Tasmanian Premier Jeremy Rockcliff and NSW Opposition Leader Chris Minns have called for an extension to pandemic leave payments.
Federal Labor MP Mike Freelander broke ranks on Thursday, urging the prime minister to extend the support measures.
"Anything we can do to slow the spread of the virus is very important," Dr Freelander told The Australian newspaper.
"I'd like Anthony Albanese, when he gets back from the Pacific Island conference, to reconsider."
More than 47,000 cases and 78 deaths were recorded in Australia on Thursday with 4512 people in hospital.
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