Australians will face restrictions on hosting social gatherings in their own homes and more workplaces will be forced to close as the nation moves towards a British-style shutdown that could last months.

In an escalation of shutdown measures discussed by national cabinet on Tuesday night, Prime Minister Scott Morrison and state and territory leaders were preparing for the next stage of the coronavirus pandemic, which would see only essential services operate and residents largely confined to their homes.

Police visit a woman who recently returned from Bali to ensure she was self-isolating. Credit:

The new restrictions come after an elite team of academics quietly recruited by the federal government to help develop Australia's social distancing strategy recommended an immediate, hardline and costly lockdown to boost the chances of a quick national recovery once the COVID-19 crisis ends.

Urging a "go now, go hard, go smart" strategy that would shut down schools, the expert group advised Health Minister Greg Hunt and Chief Medical Officer Brendan Murphy an estimated 20 to 30 per cent of Australians would not comply with the measures and strengthened public communication was needed.