Mr Morrison said mask mandates would be a matter for individual states and territories.

"Some [states] like to use mandates, others like to use that encouragement and rely on the individual responsibility to achieve that. What matters is the people wear them," the Prime Minister said.

Mr Morrison said it was a "positive meeting" and that they are taking the Omicron variant very seriously.

"Omicron, we all agree, presents another new challenge, but we have faced so many challenges already during the course of this pandemic," he said.

"On each occasion, we've worked together to ensure that our response across the country and across governments has been able to deliver one of the lowest death rates in the world from Covid, one of the strongest advanced economies in the world coming through Covid, and thirdly, one of the highest vaccination rates in the world."

The COVID-19 vaccine booster interval remains at five months despite calls for it to be shortened to four. That will be a decision for ATAGI, the Prime Minister said.

Mr Morrison said state vaccination hubs that have been rolled back will be put back in place.

Leaders will further discuss whether PCR testing is required for travel.

"It is important that we focus the PCR tests on those who are close contacts and those who are symptomatic, and not be standing in queues with other people who are just looking to get on a plane," Mr Morrison said.

The Chief Medical Officer Paul Kelly said Omicron is quickly replacing the Delta strain, with around 500 cases in Australia.

"Omicron is here, we have to learn to live with it."

The Commonwealth will increase payments to GPs and pharmacies by $10.

Earlier, 12pm: The Victorian Government is calling for the COVID-19 vaccine booster interval to be shortened to four months.

It comes as testing sites are again being overrun by holiday-makers and those exposed to COVID-19, as Victoria posted a testing record ahead of Christmas.

The state reported 1503 new COVID-19 cases on Wednesday from 92,262 test results - the most processed in a 24-hour window since the pandemic began in early 2020.

Victoria will join other states to call for the COVID-19 vaccine booster interval to be further reduced from five months to three or four months at the virtual National Cabinet meeting today.

READ MORE: Rush for booster shots prompts rethink of Warrnambool vaccination centre shutdown

More than 17,000 Victorians were vaccinated in state-run hubs on Tuesday, as the national booster program gathers momentum.

Victoria's active case numbers remain relatively stable at 13,888, as do hospitalisations intensive care figures.

A total of 394 COVID-related patients are in hospital, including 70 who are actively infected with the virus and in intensive care, with 41 on ventilators.

The seven-day hospitalisation average has risen marginally to 391.

Over 350,000 Victorians have had their third booster dose.

The state government will continue to explore making rapid antigen tests free in other settings outside of schools, Victorian COVID-19 Commander Jeroen Weimar said on Wednesday morning.

He said the state was confident there's sufficient vaccine supply for those eligible for booster shots.

"We all need to get booster doses done to protect ourselves into 2022," Mr Weimar said.

Waiting times for COVID-19 testing have blown out across the state as people seek clearance for holiday travel.

"If not you're symptomatic and not a close contact, go to the pharmacy and get rapid antigen test," Mr Weimar said.

There are 61 confirmed cases of Omicron in Victoria, with numbers expected to rise.

Mr Weimar labelled latest Doherty modelling of a worst case scenario of 200,000 daily cases by late January or early February as "pretty horrific" and "extremely concerning".

"We should all take this seriously, it's not a trivial Christmas story, this is a significant threat to our state and to our health system.

"We'd all rather be somewhere else on Christmas and New Years but there are thousands working in our healthcare systems to keep people safe and well.

"We don't get to choose when Omicron comes up but we can choose when we get our boosters."

He encouraged the community to take up boosters, maintain social distancing, gather outside and wear masks indoors.

"Don't go to the Christmas party and think, 'I'm a little off colour, but I should be OK.' We all want to be with our loved ones but we don't want to be spreading the virus around any further."

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