The federal government has announced plans to reduce the current COVID-19 disaster payments as vaccination rates continue to rise.

Treasurer Josh Frydenberg says Australians need to adjust to life with the virus, and by reducing disaster payments the country can begin to open up again. 

At 70% full vaccination, disaster payments will no longer be renewed automatically, with recipients needing to reapply every week. 

Payments will cease entirely once states reach 80%.