A generous federal support package has been agreed for NSW businesses hit by Sydney's coronavirus outbreak.
Prime Minister Scott Morrison and NSW Premier Gladys Berejiklian have announced JobKeeper-style payments that go above and beyond arrangements during Victoria's most recent lockdown.
"Clearly, here in NSW, the situation has taken a very different turn," Mr Morrison said in Sydney.
"We think this gives people the encouragement to see it through."
He said the support is in the national interest and will be offered to any other state or territory that experiences an extended lockdown.
From week four of a lockdown in a declared hotspot, the disaster payment will increase to $600 if a person has lost 20 or more hours of work a week, or $375 for between eight and less than 20 hours of work a week foregone.
A direct payment to businesses will go to those with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.
Not-for-profit organisations will receive between $1500 and $10,000 per week based on the level of their payroll.
For sole traders, the payment will be set at $1000 per week.
"I'm grateful for the speed with which the Commonwealth has responded to the issues we raised," NSW Premier Gladys Berejiklian said.
Payments will be made available across NSW, with the costs shared 50/50 between the NSW and federal governments.
There is also a $17.35 million mental health support package for NSW including for services through Lifeline, headspace and Kid's Helpline.
Mr Morrison ruled out another early access to superannuation scheme.
The NSW government will separately offer rent relief for commercial and residential tenants and payroll tax deferrals for businesses.
Shadow treasurer Jim Chalmers said it was humiliating for Mr Morrison to admit he was wrong on ending the JobKeeper wage subsidies.
Economists have estimated the cost of the lockdown at $1 billion a week, even with many businesses still open.
NSW reported 89 new COVID-19 infections on Tuesday, with cases nearing 800 since mid-June.
The prime minister joined community leaders on a Zoom call as the outbreak spreads into Sydney's west where language barriers are feared to have prevented the stay at home message from getting through.
"Stay at home. Get vaccinated. That's it," Mr Morrison said.
A second death was recorded from the latest outbreak, a man aged in his 70s from the eastern suburbs.
Regional NSW is also at risk, with a case confirmed at a Goulburn construction site that has now been shut down and workers sent into isolation.
With the rapid spread of the Delta variant across households, Sydney's lockdown is likely to continue beyond Friday and into at least a fourth week.
Tougher restrictions are being brought in for Sydney's southwest after a surge in infected family groups, with essential workers in the Fairfield local government area required to get a COVID test every three days.
Federal and state health authorities have also continued to urge younger people not eligible for Pfizer vaccines to talk to a doctor about getting AstraZeneca.
A national expert panel has reassessed its advice as community transmission increases but maintained its position on Tuesday on preferring the Pfizer vaccine for people under the age of 60.
But after weighing up the risks from the Delta variant, if Pfizer supplies remain unavailable then people should think about getting protection from AstraZeneca, officials said.
People in an outbreak area getting AstraZeneca are advised to cut the gap between the two required doses to four to eight weeks, not 12 weeks.