The Morrison government is applying sustained pressure to state governments considering backing away from nationally agreed vaccine targets.
Frydenberg said Doherty Institute modelling guiding the plan out of the pandemic showed a zero-case aim was unrealistic.
“We have to learn to live with COVID,” he told the Nine Network.
“It means deaths, it means serious illness and indeed means more cases. But our health system is built to cope. We have put in place a surge capacity for that.”
He said there was no other alternative to opening up when it is safe to do so.
“We can’t live in lockdown forever.”
Under the agreement, the chances of lockdowns are reduced when 70 per cent of the population aged 16 and over is fully vaccinated.
At 80 per cent, only highly targeted lockdowns are likely to be used and state borders are expected to be open.
But premiers in WA and Queensland have called for updated advice because the initial modelling was based on relaxing restrictions with around 30 cases a day.
The institute says the targets can be maintained with hundreds of daily cases.
Prime Minister Scott Morrison will chair a national cabinet meeting of state and territory leaders on Friday with the deal fracturing.
The treasurer believes premiers and chief ministers are picking up on public sentiment supporting the plan.
Nine newspapers have published new polling showing 62 per cent of voters support the staged national reopening agreement.
Just 24 per cent support states and territories going their own way.
Australia has fully vaccinated 30.27 per cent of its population aged 16 and over and 52.78 have received one jab.
NSW is living through a more pressing crisis with 753 new local cases on Tuesday, while Victoria reported 50.
The ACT, which is the third jurisdiction in hard lockdown, detected a pandemic-high 30 cases.
Labor leader Anthony Albanese has accused the prime minister of pretending the Doherty Institute research ruled out lockdowns at 70 per cent coverage.
“Mr Morrison is a barrier to the end of the tunnel, not the light. He’s the gaslight on the hill,” Mr Albanese told a caucus meeting.
He said Mr Morrison desperately wanted to argue he was pro-freedom while casting everyone else as being against reopeningJump to next article