He said the two-person limit did not apply to people in the same household, only to people from different households - giving the example that several people from one home could spend time with one other person.
The PM addressed the nation in a press conference.
"It is very simple", Dr Murphy said.
"There is strong advice that people aged 70 and over should stay at home and self isolate for their own protection to the maximum extent practical".
Mr Morrison said that would allow parents to walk together with their children outdoors, and people living in shared accommodation to continue to living together.More news: Fauci Projects 'Millions of Cases' in USA , 100K Deaths
All others have been advised to stay home for all reasons other than exercise, grocery shopping, medical care, compassionate needs, exercise, and work or employment if it absolutely can not be done remotely.
"Anyone who doesn't need to be out of their home, should be in the home".
The Prime Minister has defended the move to allow passengers on board the Artania into Perth to be treated in private hospitals as following the "moral rules" observed by the whole global community during the COVID-19 pandemic.
"The measures that we have in place, I think, are having the impact that we would hope they would have, but there are no guarantees".
Announcing a new $1.1 billion health package to deal with the COVID-19 crisis earlier on Sunday, Mr Morrison said greater cooperation in terms of self-isolation and social distancing was delivering dividends.More news: A Bug Existing Since iOS 13.3.1 Interferes With VPNs Encrypting Traffic
The PM said people should not be leaving their homes unless they had to go to work, were buying essential items, were receiving medical attention or exercising.
'They can go outside and be accompanied by a support person for the purposes of getting fresh air and recreation, but should limit contact with others as much as possible'.
"These arrangements should also apply to those with chronic illness, over 60, and Indigenous persons over the age of 50", Mr Morrison said.
They agreed to a six-month moratorium on evictions for commercial and residential tenancies in financial distress who couldn't meet their commitments because of the COVID-19 fallout.
The latest measures aimed at stopping the spread of the coronavirus were announced following the National Cabinet meeting this afternoon.More news: Vassell believes Grealish will inevitably leave Villa
While asking banks to support this measure, Morrison also emphasised the fact that commercial tenants and landlords alike will be expected to come to their arrangements.