Anthony Albanese to restore $750 Covid payments as he rushes forward national cabinet meeting to Saturday

The Prime Minister has rushed forward an emergency national cabinet meeting on the escalating Covid-19 crisis from Monday to Saturday.

Anthony Albanese will temporarily reinstate pandemic payments in the wake of a revolt by unions, state premiers and his own backbench.

But the backflip is expected to only apply for a limited timeframe as the nation confronts a dramatic spike in cases.

The Prime Minister has rushed forward an emergency national cabinet meeting on the escalating Covid-19 crisis from Monday to Saturday.

Amid calls from state leaders to reinstate the $750 payment for casuals forced into seven days of isolation under health orders without sick leave - government sources confirmed on Friday night they expected movement over the weekend.

Cabinet sources said the government had to move and expressed concern the current situation was a “schemozzle”, with the government being criticised by union leaders and Labor premiers.

Acting opposition leader Susssan Ley said the Prime Minister owed voters an apology.

“As late as this afternoon, government ministers were arguing there was no room in the budget to fund these measures,” she said.

“Now late on a Friday the Government has caved to pressure.

“Mr Albanese owes an apology to the tens of thousands of Australians who have faced stress and uncertainty in recent weeks following his decision to end those payments.”

Australian Prime Minister Anthony Albanese speaks during a press conference at the Australia Pacific Training Coalition centre (APTC) after attending the Pacific Islands Forum (PIF), in Suva. (Photo by William WEST / AFP)

The Prime Minister was briefed on the spike in Covid cases by Chief Medical Officer Professor Paul Kelly on Friday night after returning from Fiji and immediately announced he will bring the meeting forward.

“Received afternoon briefing from Chief Medical Officer, Professor Paul Kelly on BA4/5 COVID wave,” the Prime Minister tweeted.

“He will report to National Cabinet tomorrow morning and we will discuss proposals to ensure the vulnerable are protected over coming weeks.”

Australia recorded 43,488 new cases over the last 24 hours and hospitalisations are on track to hit 5,000.

The decision caught several states by surprise with two states telling news.com.au they did not realise the meeting had been moved.

The $750 pandemic payments scheme was scrapped on June 30 but NSW Premier Dominic Perrottet has been leading the charge to reinstate it.

Privately, Labor premier Dan Andrews in Victoria and the South Australia Premier Peter Malinauskas are also calling for more support for casuals.

NSW Premier Dominic Perrottet earlier said that if we were forcibly requiring people to stay at home, the Albanese Government needed to reinstate financial support for casuals.

“My view is this: if we’re going to have the state take away people’s liberty and they can’t work well then the state needs to compensate,’’ Mr Perrottet said.

“The real conversation to be had is this: what is the future of public health orders?”

Francis Sullivan, Chair of Catholic Social Services Australia, said it was understood that the Premiers will also push to have the federal government continue funding free rapid antigen tests for concession-card holders.

“Shutting off the payment was always going to be a difficult decision to maintain throughout the dangerous winter months,” he said.

“The Prime Minister must be congratulated for reversing a decision that was never going to be in the best interests of the nation and those most at risk.

“Closing the payment scheme sends the wrong message and puts low income and disadvantaged groups at risk as we face warnings of millions of new infections before winter is finished,” Mr Sullivan said.

A young woman wears a face mask in Perth. (Photo by Matt Jelonek/Getty Images)

In an exclusive interview with news.com.au, Mr Perrottet said he wanted to hear from health experts on whether seven-day isolation requirements should be scrapped or reduced after the winter wave of cases was over.

He said this wasn‘t a “let it rip” solution but a sensible idea if backed by medical experts - given the high vaccination rates in the community.

“Ultimately, we have to get to a point where if you are sick you stay at home and if you are not sick you can go to work,” he said.

“And I think we need to look at the periods of time in which we are forcibly requiring people to not be able to work and provide for their families.”

But he warned if we were forcibly requiring people to stay at home the Albanese Government needs to reinstate financial support for casuals.

The matter will be discussed at the national cabinet on Monday.

“My view is this: if we’re going to have the state take away people’s liberty and they can’t work well then the state needs to compensate,’’ Mr Perrottet said.

Senior government sources dismissed as “bulls***” a report in the Sydney Morning Herald that Treasurer Jim Chalmers was the biggest roadblock to the reinstatement of payments for casuals.

Health minister Mark Butler has expressed his “regret” that the previous government axed the scheme but also suggested the budget deficit was one reason why it could not remain in place forever.