Jo Burford, owner of Horsham's D'Coco Hair Studio, D'Lush Studio and Hydeaway Hair, said what the government proposed was "ridiculous".

She has decided to close her salons.

"I am mind blown and gutted... no one in the hair industry can understand this," Mrs Burford said.

Prime Minister Scott Morrison announced Tuesday that hairdressers and barber shops could continue to stay open, but a customer must not be on the premises longer than 30 minutes.

"We don't do half an hour services... 90 per cent of our clientele are cut-colour clients," Mrs Burford said.

Mrs Burford said she put the health of her clients, employees and family first and was in the process of ringing clients.

"It has been a very difficult decision but life in our salon is happy, loving and caring - that is who we are - and if I can't continue that then there is no point in staying open," she said.

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Horsham's Sheer Urbane Hair owner Stacey Turnbull said the new measures restricted business.

But she was grateful the studio still had its doors open when a lot of other businesses did not.

"30 minutes isn't really viable for an appointment time but we are in an economic crisis and we are better off than some," she said.

Ms Turnbull said her business would abide by the one person per four square metre rule and would allow "four people maximum" in the hair salon.

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