Australia confirmed two more cases of the virus on Sunday - one in Victoria and one in NSW - bringing the national total to 27. More than 2940 people are reported to have died from coronavirus worldwide, with around 86,000 people diagnosed with the virus.

While Iranian-Australians said they understood the need for caution, they said, in some cases, lives had been put on hold.

Maryam, from Melbourne’s north-eastern suburbs, said she knows many Iranian-Australians who haven’t been able to return to Australia. One family breadwinner had visited relatives and now can't return to work in Victoria, she said.

Students due to take up university scholarships in Australia were also uncertain whether they could defer their studies.

Expatriate women with babies, "really need their parents [from Iran] to be beside them but they can’t", she said.

Maryam, who declined to give her surname, described as "quite unfair" the Australian government’s stipulation that foreigners coming from Iran take a 14-day isolation in a third country, while Australian residents and citizens could come straight here and self-isolate for 14 days.

She said both groups could include people who were contagious, so there shouldn’t be discrimination.

She said she understood the Australian government’s caution, "but there should be a third island like Christmas Island or other island so they can spend their quarantine there, and then come back, no matter if they are permanent residents or not".

Maryam doubted whether a third country would take Iranian travellers and said many flights out of Iran had been cancelled. Those airlines still operating were fully booked.

She said some Iranian students should be eligible for the grants that universities were offering Chinese students to help them serve quarantine periods in other countries.

Home Affairs Minister Peter Dutton has suggested Iran’s under-reporting coronavirus cases was a key reason for announcing the travel ban.

Asked why the Australian government had not banned travel from countries like Italy and South Korea which had more confirmed cases, Mr Dutton said the “sudden surge” in Iran was a significant concern.

“Of the 106 deaths that are reported outside of China, 43 of those have been in Iran so - that's the highest number of deaths,” Mr Dutton told the ABC’s Insiders program.

America's top public health agency, the US Centres for Disease Control and Prevention, has told US citizens they should not travel to any part of Italy, Iran, China or South Korea if the travel is non-essential.

Federal Health Minister Greg Hunt said on Sunday he had asked deputy chief medical officer, Professor Paul Kelly to consider the appropriate level of travel advice for Italy.

Australian Iranian Community Organisation president Siamak Ghahreman said he “100 per cent supports” the travel ban, even though it means there are some members of his community that are stuck in Iran during the health crisis.

“Of course the travel ban affects many people, but that is actually a good thing to do,” Mr Ghahreman said.

“The individuals cannot put the rest of the community at risk. If this is what needs to be done, it should be enforced ... it benefits everyone. Not just Iranians, but everyone in Australia. It should be done.”

A Melbourne-based Persian rug importer, who asked not to be named, said he had postponed a trip to Iran later this month. He had planned to buy rugs there, and to celebrate his culture’s New Year.

But he "didn’t want to take the risk" of not being able to return to Australia, where he had a business to run.

The importer said he travelled to Iran about twice a year and also went to China and India to purchase rugs. However, he doesn’t feel he can travel "until the thing comes under control".

He agrees with some travellers having to spend two weeks in a third country before coming to Australia.

"Anyone who comes from there, I think they should, because we want to keep Australia as safe as we can."

With Jenny Noyes