But the prime minister has been warned planned welfare cuts could leave 145,000 more people unemployed and cost the economy $31 billion.

Mr Morrison gave another taste of his upcoming budget on Tuesday by promising to open up new gas supplies and back the construction of a gas-fired power station in NSW, if the private sector does not do it soon.

He claimed the investments would shield employers and households from energy price spikes, while giving businesses confidence to invest.

Mr Morrison said his focus was shifting away from lifelines like JobKeeper and JobSeeker, which were designed to help people survive the initial COVID-19 economic crisis.

"We don't just want to get through," he told business leaders in NSW.

"We need businesses to have the confidence to grow and to employ more people."

Labor argues the proposed gas-led recovery is unambitious and too slow, saying it will do nothing for the one million Australians already unemployed, or the 400,000 more expected to join dole queues by Christmas.

"One of the things that has characterised this government is a gap between its announcements and actual delivery - it's good at announcements, it's not good at delivery," Labor leader Anthony Albanese said.

And the prime minister has been warned withdrawing support from the unemployed as planned could have dire impacts.

The coalition plans to cut pandemic-boosted welfare payments in less than two weeks, before removing top-up payments entirely after Christmas.

Deloitte analysis commissioned by the Australian Council of Social Service found this would harm the nation's economic recovery - due to a sudden drop in consumer spending - cutting jobs and economic growth.

Bill Gye from Community Mental Health Australia has also warned it could do significant psychological damage.

"The reduction of JobSeeker will have a really significant negative impact on the mental health of Australians," he told a parliamentary committee.

Victoria is beginning to show clear signs of emerging from its second wave of infections.

The state recorded no new deaths on Tuesday for the first time in more than two months.

Restrictions on regional Victorians will begin to ease at midnight on Wednesday, as new daily case numbers slow to a trickle outside metropolitan Melbourne.

South Australia is preparing to reopen to the ACT, which has been virus-free for months.

But South Australia is still waiting to see a drop in community transmissions in NSW before restoring those travel links.

NSW recorded seven new cases on Tuesday including two linked to known clusters, three overseas travellers and a resident returning from Victoria.

Australian Associated Press