Federal government bans gatherings of 100 people indoors

It joins the existing ban of non-essential external gatherings of more than 500 as the response to the COVID-19 epidemic ramps up.

Prime Minister Scott Morrison made the announcement on Wednesday morning calling the measures "scalable and sustainable" and the new rules are effective immediately.

The ban applies to non-essential gatherings, so transport is not impacted and nor are health facilities, Prisons are not impacted by the ban, nor are workplaces including mining sites and supermarkets. Mr Morrison said they come under the definition of essential. Schools, childcare, universities and hotels are also not impacted by the ban.

But places of worship must comply, including with the 1.5 metre social distancing guideline, except among family groups, he said. Moving to online church services would be sensible, he said.

Mr Morrison also had strong words against panic buying.

"Stop hoarding, it's not sensible, it's not helping, it is not necessary," he said.

"It is ridiculous, it is unAustralian and it must stop.

"It is distracting attention and efforts from maintaining supply chains in shopping centres."

The PM also asked people not to abuse staff doing their jobs.

"We are all in this together. Everybody is doing their best," he said.

"I encourage people that if you see someone doing that, call it out and ask them to refrain."

Mr Morrison said the government was considering further economic measures to deal with the safety net for small business and individuals.

"Last week we implemented stimulus measures, these are different to cushion impact on safety net," he said.

"The Reserve Bank will act independently, further measures will be announced once properly designed."

The PM said 80,000 tests for COVID-19 had been completed and additional testing kits were on their way.

He said sporting organisations needed to manage their own decisions based on the new rules and guidelines while schools would reopen after school holidays

Australian Chief Health Officer Dr Brendan Murphy said it was in the best interests to keep schools open.

"Local school closures may be necessary, but our view is that they should stay open," Dr Murphy said.

"We need to make sure schools are as safe as possible, schools should practice good hygiene, wash hands when eating or in common areas.

While tough restrictions are also in place for aged facilities, Dr Murphy said there was no sense in completely locking down aged care.

"We've got to protect elderly for the long haul, for six months or more," he said,

Dr Murphy said every citizen has to think about every interaction and recommended social distancing.

"There are 454 cases in Australia, increasing numbers each day. the majority of new cases imported or direct contacts of imported cases, our strategy is isolate and contact tracing.

"In the community transmission is at low level and we must practise social distancing

"Every expert is united, social distance is important to prevent and delay transmission in coming months.

"shortterm 2-4 weeks shutdown does not achieve anything, need to be in for long haul

Dr Murphy said we all needed to wash hands with soap and water, practise social distancing and hand hygiene.

"No more handshakes, no more hugging, wash hands all the time, use hand sanitiser. There is no need to be in state heightened anxiety but we need to be prepared."

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