Any states or territories in an extended lockdown will benefit from a new support package, with NSW being the first state entitled to it.

From week four of a lockdown because of a Commonwealth government declared hotspot, the COVID-19 Disaster Payment will increase to $600 if a person has lost 20 or more hours of work a week or $375 if a person has lost between eight and less than 20 hours of work a week.

The Commonwealth and NSW have also agreed that from July 18 the disaster payment will be available to those outside Commonwealth declared hotspots in NSW that meet the criteria for the payment.

The NSW government will fund any payments outside a Commonwealth declared hotspot, with the Commonwealth continuing to fund payments to recipients in a Commonwealth declared hotspot.

A new business support payment will also be available to entities with an annual turnover between $75,000 and $50 million who can demonstrate a 30 per cent decline in turnover.

To receive the payment, eligible entities will be required to maintain their full time, part time and long term casual staffing level as of July 13.

Eligible entities, which includes not-for-profits, will receive payments of between $1500 and $10,000 per week based on the level of their payroll.

For non-employing businesses, such as sole traders, the payment will be set at $1000 per week.

The Commonwealth and NSW governments will also deliver a $17.35 million mental health support package for NSW.