Prime Minister Scott Morrison on Tuesday night said hairdressers could remain open, but clients would only be allowed to stay in the salon for 30 minutes and all staff would need to practice social distancing.

Mr Morrison changed that decision on Thursday, saying the appointment time restriction would be scrapped effective immediately.

But the Prime Minister said the four square metres of distance rule should still be "strictly observed" within hair salons and personal contact should be minimised wherever possible.

Read more: Bendigo hair salons shut up shop due to tighter COVID-19 restrictions

Jools for Jim director Jill Cantwell on Wednesday chose to close her salons because the restrictions were unworkable.

She said Mr Morrison's new position was frustrating.

"It shows a lack of respect for the industry," Ms Cantwell said. "It shows that it wasn't thought through or investigated properly.

"What needed to happen was to simply close down salons for the protection of all clients and team members."

Ms Cantwell said she did not regret the decision to close her salons from Thursday.

"I would like to know on what basis the Prime Minister has chosen to change his mind," she said.

"Why is it safe to now work with people for longer? It's just absolutely ridiculous.

"I guess he's never stepped into a salon. Even team members are working closely together."

Mr Morrison said the national cabinet would meet again on Friday to discuss further coronavirus restrictions.