A ban will effectively be placed on all non-essential gatherings of more than 500 people across Australia in a tougher approach to the coronavirus crisis.
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The move, which will start on Monday, will not apply to schools, universities, public transport or airports.
The Royal Easter Show was an immediate casualty, with its cancellation announced on Friday afternoon.
President of the Royal Agricultural Society of NSW Robert Ryan OAM said it was distressing and disappointing to cancel the show for 2020.
"There are many people who will be very upset by this decision, and this is the first time the Sydney Royal Easter Show has been cancelled because of a public health emergency since the Spanish Flu pandemic in 1919," he said.
Elsewhere, the Brigadoon Highland Gathering Festival in Bundanoon in the Southern Highlands has been postponed until August/September.
A new date will be advised shortly.
Prime Minister Scott Morrison and state and territory leaders agreed on strongly recommending the limits on gatherings at the Council of Australian Governments meeting on Friday.
The move was recommended by Chief Medical Officer Brendan Murphy and the Australian Health Protection Principal Committee.
Mr Morrison also advised Australians against travelling overseas unless it is essential.
"Only essential travel should be considered if you are going overseas from this point forward," Mr Morrison said.
Mr Morrison said the government's advice on the restrictions on gatherings was "a scalable precautionary response."
He said he would still be attending the Sharks-Souths rugby league clash on Saturday, although "it might be the last game I get to go to for a long time".
Mr Morrison said, if churches held services for more than 500 people, they would have to consider holding more with fewer numbers.
There is speculation the state government will announce the cancellation of the Royal Easter Show.
A response is awaited from the the NRL and AFL.
Even before the announcement, the Australian Formula One Grand Prix and Supercars' round, which was to be held in Melbourne this weekend, was cancelled.
Cricket Australia has banned spectators from Australia's three-match one-day series against New Zealand in Sydney and Hobart.
The World Surf League has cancelled the opening event of the 2020 Championship Tour - the Corona Open on the Gold Coast from March 26.
The number of coronavirus cases in NSW has risen to 92, with 14 new cases reported between 1pm on Thursday and 11am today (Friday).
NSW Health listed the new cases, advising whether they were travellers, but no residential information was provided, which is now the general practice.
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