With Australia reporting six cases on arrivals from Iran and two cases of person-to-person transmission, Indonesia also reported its first two cases on Monday after weeks of concern about the nation's failure to test widely.

Chief Medical Officer Brendan Murphy said it was no longer possible to stop coronavirus entering Australia.

"Travel bans are, at this stage when we have an outbreak in many countries, a way of delaying the burden of new cases coming in," he said.

"It's no longer possible to absolutely prevent new cases coming in."

In Iran, the risk was so high that a travel ban was justified, but in Italy and South Korea cases were confined and localised.

"You cannot stop Australian citizens coming back, some of the cases that came back from Iran with the disease are Australian citizens," he said.

"It's a way of slowing things down."

Australians to reconsider travel to 10 towns in the Lombardy area, in the north of the country, where there is a significant coronavirus outbreak, and one in Veneto.

Aged care workers or health workers who return from Italy or South Korea are now being told not to return to work for 14 days, given the higher death coronavirus death rates among older people. Australia has identified aged care facilities as a top priority in its virus response, with Professor Murphy to hold workshops with the sector this week.

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The government has also foreshadowed the use of unprecedented powers to force people to disclose their contacts and ban individuals from attending places or events.

Attorney-General Christian Porter told parliament that it might be necessary to use powers under the Biosecurity Act 2015 for the first time to contain the coronavirus. Covid-19 has been listed under that act.

That allowed authorities to declare a "human biosecurity control" for a person exposed to the disease, which would force them to give information about people that they have contacted or had contact with so that we can trace transmission pathways, and require them to stay at specified place.

The act also gave authorities the power to declare a human health response zone for local disease outbreaks or to stop individuals from attending places such as schools, shopping centres or work.

"It's very important for all Australians to understand that there are powers under laws that were introduced specifically by this government that they may never have experienced before at all or on any scale and which may become necessary to use in the months ahead," he said.

Globally, there are more than 88,000 recorded cases, although Mr Hunt said the actual numbers could be significantly higher, and almost 3000 deaths. Sixty-seven countries are impacted, with the Dominican republic, the Czech republic and Luxembourg the latest to join the list.

For most of Italy, travellers are urged to exercise a high degree of caution, but people are now advised to reconsider travel plans for 10 small towns in Lombardy: Codogno, Castiglione d'Adda, Casalpusterlengo, Fombio, Maleo, Somaglia, Bertonico, Terranova dei Passerini, Castelgerundo and San Fiorano, and to Vo' Euganeo in Veneto.

Travellers are also advised to reconsider travel to Daegu and Cheongdo, in South Korea.

For the rest of Korea and Japan, the advice is to exercise a high degree of caution.

The advice for Iran and China is "do not travel", and non-Australians from those countries are banned from entering Australia. Australians, permanent residents and their immediate families are allowed into Australia but must self-isolate for 14 days.

A stimulus package looks imminent, with Prime Minister Scott Morrison telling Parliament that he, Treasurer Josh Frydenberg and senior officials met on Monday with Reserve Bank governor Phillip Lowe and his deputy governor to discuss the impact on the economy globally and locally.

"We'll be focusing on ensuring that we keep Australians in jobs, we keep business in business and we keep investment flowing during what will be a very challenging time for the Australian economy," he said.

Mr Frydenberg said the economic impact would be much more significant than during the SARS outbreak. Australia's two-way trade with China was worth more than $200 billion a year. China was the top market for international students, worth $12 billion a year, and the top source of tourists, with more than $1 billion a year. One-third of Australia's exports went to China.

Australia's response would be targeted and not reckless, he said.

"We'll see a responsible, considered and a targeted response focusing on ensuring that businesses and those affected are stronger when they come out," he said.

The Reserve Bank meets on Tuesday, with widespread anticipation of a rate cut.