The Prime Minister and state and territory leaders want all non-essential gatherings of more than 500 people to be suspended from Monday amid fears about the spread of coronavirus.

Key points: Chief medical officer Brendan Murphy has recommended a ban on events with more than 500 people

Chief medical officer Brendan Murphy has recommended a ban on events with more than 500 people The nation's leaders want non-essential events with more than 500 people to stop from Monday

The nation's leaders want non-essential events with more than 500 people to stop from Monday Australians have also been urged against travelling overseas unless it is essential

It came after Australia's chief medical officer told the leaders at a COAG meeting that mass gatherings of more than 500 people should be cancelled.

Prime Minister Scott Morrison said the cancellation would not be extended to schools, universities, public transport or airports.

"It is precautionary. It is getting ahead of this to ensure that we can minimise the impact on your health and [so] we can ensure with confidence the ability for people to be accessing the health services that they and their families will need," Mr Morrison said.

He also said churches with large followings might have to consider adding extra services to keep numbers under 500.

The leaders have also urged Australians against travelling overseas unless it is essential.

"We now advise all Australians to reconsider your need to travel overseas at this time, regardless of your destination, age or health," Mr Morrison said.

"If your travel is not essential, consider carefully whether now is the right time."

The Australian Formula 1 Grand Prix in Melbourne had already been cancelled, and spectators for cricket games banned. Questions about crowds have also been hanging over NRL, soccer and AFL matches.

Chief medical officer Brendan Murphy said health officials had endorsed the recommendation to cancel only non-essential gatherings.

"This is a proportionate early response to get ahead of the curve," he said.

A senior West Australian doctor has called for all schools to be closed soon and for there to be no crowds allowed at events as the coronavirus spreads, declaring he wants his colleagues to stay alive.

Mr Morrison said a new national cabinet, including state, territory and federal leaders, would meet weekly to assess Australia's response to coronavirus.

That group will meet again on Sunday ahead of the request for mass gatherings to be cancelled.

The Federal Government on Thursday released a $17.6 billion economic stimulus package in a bid to keep Australia out of a recession.

It also extended its travel bans to foreign nationals coming from China, Italy, Iran and South Korea.

Mr Morrison on Friday said health officials had not requested an extension of those bans to include other countries, despite the spread of the virus globally.

Leaders cancel plans to attend football

Prime Minister Scott Morrison and federal Opposition Leader Anthony Albanese earlier on Friday both said they planned to go to the football this weekend.

Mr Morrison, speaking after the COAG meeting, said he still planned to go to the football.

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Though he warned it might be the last time he could attend the football, with supporters likely to have to watch matches on the television after this weekend.

"I do still plan to go to the football on Saturday," Mr Morrison said.

"This is an arrangement we are putting in place for next week is a precaution. This is an early-stage action that we are undertaking to make sure we get ahead of this."

Hours after he said that, a spokesperson said the Prime Minister would no longer attend the match.

"The Prime Minister believes this would avoid any unnecessary confusion about his attendance," the spokesperson said.

Mr Albanese immediately after the COAG meeting cancelled his plans to attend the football.

Earlier in the day, WA Australian Medical Association president Andrew Miller posted on social media: "You want to go to the footy? I want my colleagues to stay alive."

He finished the tweet by declaring "this is not a game".

Mr Albanese said the decision on cancelling major public events should be based on health considerations, not politics.

Queensland Premier Annastacia Palaszczuk, ahead of COAG, said she would go to a rugby league game in Townsville on Friday night, but wanted some clear guidance on public events.

Brendan Murphy said people had unnecessarily received COVID-19 tests, which had contributed to shortages. ( ABC News: Matt Roberts )

Testing supplies running low

The COAG meeting also heard Australia was facing medical supply chain issues as demand for coronavirus tests increases.

The chief medical officer said there had been a huge call for medical supplies involved in testing, with many Australians being tested when they do not need to be.

Dr Murphy said as a result of demand, there was also temporary issues with supply, as countries that produce medical consumables seem to be putting export controls over them for their own use.

"So we are working through that, working through a new testing paradigm so that we can make sure doctors only refer people who have a decent prospect of a positive test," he said.

"And we are working through ways to significantly improve that supply chain issue."