Commonwealth Covid funding arrangements with Tasmania due to expire in September will be extended to the end of the year.
Anthony Albanese has hosted his first National Cabinet meeting with Jeremy Rockliff and other state and territory leaders.
The Prime figures it is necessary while the fallout of the pandemic is still being felt.
"The decision that we made today (Friday) to extend the funding is a recognition there are currently around about 3000 people in hospital as a result of Covid, it's still having an impact."
13 patients are in Tasmanian hospitals receiving treatment for symptoms of the virus.
The deaths of two women in their 80s from the north west and south has raised Tasmania's Covid toll to 84.