The 30-minute restriction imposed on hairdressers has been lifted and exemptions will be given in hardship cases on the number of people who can attend a funeral.
Prime Minister Scott Morrison announced the changes following national cabinet on Wednesday night.
Mr Morrison said, following feedback on the the practical implementation of measures announced for barbers and hairdressers, it was agreed the 30 minutes per patron limit would be lifted immediately.
However, the four square metre rule per person restriction must be strictly observed within the premises and that personal contact during the patron's visit should be minimised wherever possible.
Mr Morrison said, in hardship cases, states and territories could provide exemptions in relation to the limit of 10 people at a funeral "but only at the margin".