Friday's national cabinet meeting of first ministers and all but one of the state premiers, was a "red tape-cutting organisation", Prime Minister Scott Morrison said, as he outlined a series of reforms where the leaders found common ground.

Existing quarantine arrangements would continue to prioritise returning Australians, the prime minister said, in a setback for local universities which have lobbied for arrangements for international students to return before the 2021 academic year.

Quarantine arrangements for international students and skilled migrants will be considered at the next national cabinet on February 5.

The federal and NSW governments would work on greater controls for quarantine and testing arrangements for international air crew that arrive via Sydney.

A communique for the meeting noted that the Commonwealth will now require "attestation" from mission heads that traveling diplomats will comply with the health and self-quarantine requirements.

Australia cannot compel mission personnel to quarantine as the Vienna convention on diplomatic relations means diplomats can't be detained.

The ACT and Queensland governments had called for greater restrictions on international arrivals who claim a quarantine exemption as consular officials following cases where the exempt-travellers later tested positive to COVID-19.

The nine leaders, including WA Premier Mark McGowan appearing via video, agreed to a series of decisions Mr Morrison described as "red tape cutting".

The states have agreed to share occupational licensing processes to ensure mutual recognition for workers and employers, bilateral arrangements for seasonal workers, a practical emergency services protocol ahead of the bushfire-risk season, and made progress on the JobTrainer program to support people to build skills for the workplace.

On infrastructure and environmental regulation, the national cabinet agreed to cooperate on initiatives from the Samuels Review, to ensure existing environmental standards would be codified and streamlined into a single touch approvals processes at a state-level.

Infrastructure Australia, which reviews large projects, would now focus on only the biggest by having its threshold of co-funded projects by the Commonwealth lifted from $100m to $250m.

"Australia is working together, we are working together and Australia is coming back from COVID-19 on the health front, economic front," Mr Morrison said, adding he was indebted to all his colleagues on the national cabinet.

"We all run around governments, cabinets and they are paramount in decisions we make. But the way we keep coming together, we get in the room, we get things done and I thank my colleagues very much for their cooperation and support."

Next year would be focused on recovery, both health and economic, Mr Morrison said. National cabinet, a new creation of the 2020 pandemic world, would continue "to provide the platform for what I think has been a game-changer in the Australian Federation this year and we want to see that impact so many other issues."

The federation reform council also met, including treasurers and the head of the Local Government Association, to discuss gaps in mental health support in Australia.