In line with the national reopening plan agreed at national cabinet, the jointly funded Commonwealth-ACT scheme to support local businesses will be expanded on Thursday to allow for additional payments up until an unspecified date in mid-October when the ACT is expected to hit 80 per cent vaccination.

There's an additional Business Grant Extension payment worth up to $10,000, another top-up payment for larger businesses worth up to $30,000, and the COVID-19 Tourism, Accommodation Provider, Arts, Events, Hospitality and Fitness Grants program will be expanded.

Federal Treasurer Josh Frydenberg said the new extension added to $2 billion in Commonwealth support for the ACT since the start of the pandemic.

"The Morrison government understands the significant impact lockdowns and border closures have had on small and medium businesses across the ACT," he said.

"The Commonwealth will cease funding state business support programs at 80 per cent full vaccination in line with the national plan for reopening.

"At this point it will be a matter for each state to decide whether any additional targeted business support is needed in their jurisdictions as a result of any health restrictions they elect to impose."

The looming end of the business support grant scheme is in line with the tapering of the Covid-19 disaster payments once vaccination targets are met.

Based on the current rate of vaccination, the latest unofficial estimate has the ACT achieving 80 percent on October 22.

ACT Chief Minister Andrew Barr said the grants scheme extension would assist local businesses as the economy gradually reopened through October and November.

"The COVID-19 Business Support Grant program has been an important lifeline to businesses impacted by significantly reduced turnover," he said.

"The ACT government has run the most efficient mass vaccination program in the nation and we are on track to achieve world leading vaccination levels.

"For every thousand people that we vaccinate, we are preventing around a hundred hospitalisations.

"Continuing our vaccination program well beyond 80 per cent of the 16 and over population to over 90 per cent of the eligible 12 and over population makes Canberra safer and supports an even stronger economic recovery in the territory."

Businesses can apply for grants of up to $30,000, depending on their turnover figures.

Under the extension announced on Thursday, there will be an additional ACT COVID-19 Business Grant Extension payment of $10,000 for all employing businesses and $3750 for non-employing businesses.

There will also be another "top-up" payment of up to $30,000 made available for larger businesses.

As well, the COVID-19 Tourism, Accommodation Provider, Arts, Events, Hospitality and Fitness Grants program will also be expanded for a payments of up to $25,000.

ACT businesses such as gyms, personal trainers and dance teachers/instructors will now also be eligible to apply to the grants program.

ACT senator Zed Seselja has welcomed the extension along with the prospect of the end to the lockdown.

"As we approach the end of lockdowns and as vaccination rates get higher, it is now critical that Canberra businesses be allowed to get back to work in line with the national plan for re-opening," the senator said.

There has been frustration with the business support scheme with many businesses yet to receive their payments.

The jointly funded scheme has now been operating for about a month, with a team of about 100 people in the ACT processing more than 9200 applications.

Mr Barr has acknowledged difficulties with the scheme, saying "this is the largest and most complex grants program that any ACT Government has ever administered".

Almost $83 million has been paid out so far, however there have been significant delays to thousands of applications with the Chief Minister citing poorly submitted paper work.

The latest figures provided by the ACT Government show that 1754 applications need more information and 1407 are in the middle of assessment.

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