Prime Minister Scott Morrison has delayed the federal budget, ordered limits of one person per four square metres in indoor venues and warned further domestic travel restrictions are coming.

Mr Morrison confirmed the national cabinet had agreed to a cap of one person per four square metres for indoor gatherings, including in pubs, cafes and restaurants, as was recommended by Australia's chief medical officers last week.

Treasurer Josh Frydenberg and Prime Minister Scott Morrison address the media on Friday. Credit:Alex Ellinghausen

"If you've got a room, if you've got a premises that's 100 square metres, then you can have 25 people in that room," he said.

The decision is likely to trigger a wave of closures across hospitality industries after limits of 100 people per non-essential indoor gathering were placed on venues earlier this week. Thousands of staff are expected to be laid off.