There will be no distancing rules at bars and restaurants at level 1, Prime Minister Jacinda Ardern says.

All restrictions on businesses, like hospitality, would be lifted with no distancing of tables.

Churches, sports stadiums, community sport, and funerals of any size can all resume while physical distancing on planes and public transport can lift.

At alert level 1 Kiwis would have to adopt new habits, like good hand hygiene, and there would still be strict border controls, Ardern said this afternoon.

The Gold Rules of Alert level 1

• If you're sick, stay home.
• If you have cold flu symptoms call your doctor.
• Wash your hands.
• Sneeze or cough into your elbow and disinfect surfaces.
• Isolate immediately if told so by authorities.
• If you have underlying conditions, talk with your GP about precautions.
• Keep track of where you've been.
• Businesses should help.
• Stay vigilant.
• Be kind to others and to yourself.

Ardern said they didn't want to move backwards and even on June 8, there would have only been two weeks with gatherings of up to 100 and four weeks at alert level 2.

Asymptomatic transmission was a risk with Covid, she said.

Ardern said she was social distancing, in response to photos of her at the weekend appearing close to others

When will NZ make the move?

Ardern said yesterday the country was ahead of schedule in its response to Covid-19 and Cabinet would review the alert level status next Monday.

The Government has previously given 48 hours notice of a shift in alert levels.

Ardern this afternoon said it was the Government's "strong desire" to get to alert level 1 as soon as was safe and possible.

When New Zealand reaches alert level 1 it would mean all of the hard work had paid off, lives had been saved and the economic recovery could happen sooner.

But it didn't mean our battle with the virus was over.

Yesterday Ardern said at alert level 1 life would be "very, very normal" - but with border restrictions.

She said modelling had shown a longer-tail of Covid-19 cases which so far had not eventuated and there was "increasing optimism" there were no cases associated with the move to alert level 2.

"Our strategy of going hard and early has paid off and in some cases, exceeded expectation in what modelling and data had predicted."

"Therefore, because of our team of five million's extraordinary commitment to beating Covid, that means we have the enviable position of having choices."

According to the Government's Covid-19 website, alert level 1 means the virus is contained and isolated household transmission could be occurring.

There would still be intensive testing, rapid contact-tracing, physical distancing is encouraged but not mandatory and there's no restrictions on gatherings.