The Government is banning indoor gatherings of more than 100 people as it steps up its fight on coronavirus.

The new advice does not apply to schools, universities, workplaces, supermarkets, or public transport.

Those who breach the public health order could face a prison term of six months and a fine of up to $4000.

RICKY WILSON/STUFF The Government are set to announce news rules for gatherings of less than 500 people.

It applies immediately and has no set end-date.

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Health Minister David Clark acknowledged this move would see many weddings and funerals called off and this would be upsetting.

"While it is unfortunate, we have to put these measures in place," he said.

"I want to stress to anyone who has thumbed their noses at this critical public health advice - you are putting the health of your family, your friends, and the whole community at risk."

Clark said the full force of the law would be used on anyone who attempted to flout the advice.

"We will likely be in this situation for some time. But we will be reviewing it."

He urged anyone in doubt about their event to cancel it.

"The Ministry of Health has produced guidance to help people understand this direction, but if in doubt cancel. Making sure we put in place social distancing rules is one of the most important things we can do to protect the public."

Clark said one of the reasons schools and universities would remain open was that it was easier to track who had been in them if an outbreak were to occur.

The Government is attempting to "flatten the curve" of the virus' spread to stop it overwhelming the health system.

There have been 28 confirmed cases of coronavirus in New Zealand, but no evidence of community transfer at this point.

GOVERNMENT WILL TALK TO HOSPITALITY SECTOR

Clark said the Government would talk about the implications of the rules with the hospitality sector over the next two days.

"We know this has specific implications for the hospitality sector. We will work with the sector over the next 24-36 hours to develop guidance," Clark said.

He said it was clear that some bars and venues would not be able to remain open.

The Government announced on Monday that gatherings of more than 500 people should not go ahead.

In Australia crowds of more than 100 people have been banned from indoor venues, seeing many larger bars and other venues close.

Australian Prime Minister Scott Morrison said the unprecedented measures were likely be with Australia for six months at least.