The prime minister warned hard borders could not be a substitute for strong testing, tracing and outbreak control regimes.

Mr Morrison welcomed the eased interstate travel restrictions.

"These are common sense changes, not before time," he told Sky News.

"I think that will just further assist getting people back into jobs and make sure we live alongside the virus, and not have it dictate how we live."

Despite travel restrictions easing in many parts of the country, Western Australia is maintaining its hardline stance.

Premier Mark McGowan is adamant the border won't reopen until NSW and Victoria go 28 days without community transmission.

"Keeping COVID out, having a hard border and getting our economy back up and functional within the borders is working," he said.

Queensland has added five more northern NSW councils to its border bubble, while South Australia is also reopening to NSW after lifting restrictions for the ACT.

The Northern Territory is offering interstate travellers up to $1000 to visit the Top End during the wet season.

Tasmania is considering opening its borders to some states before the end of October.

In Victoria, there were 28 new cases and three deaths, taking the national toll to 854.

The state's 14-day rolling average and number of cases with no known source were both down on the day before.

Mr Morrison said people needed to stick to major behavioural change when lockdowns are eased.

"The habit of living alongside the virus is not people sort of living in a mosh pit - you can't have that," he said.

"That's risky. That's going to put everyone at risk."

Queensland recorded no new cases of coronavirus on Tuesday while NSW had just two, both of whom were returned overseas travellers in hotel quarantine.

Australian Associated Press