Secretary Kate Chamberlain said previously the club had benefitted from 1.8-metre high partitions which allowed 20 diners to be served across two divided areas.

When rules were changed last Sunday by the Victorian government it became a requirement to have indoor spaces separated by "permanent structures" which were to be "floor to ceiling or be at least 2.1 metres high".

"In effect the new criteria, the new restrictions have reduced our capacity from 20 down to 10," Ms Chamberlain said.

"If we had non-permanent partitions allowed we could have arranged to stretch it out to 30, we could have accommodated 10 in three spaces."

The Department of Health and Human Services stated the rule was based on public safety.

"While eating, people are less likely to wear masks or practice physical distancing and we know the risk of transmission is high in enclosed spaces," a spokesperson said.

A question about why a 1.8 metre non-permanent partition was not suitable went unanswered.

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The rule is the latest blow for the RSL which has struggled through the year in the wake of the coronavirus.

The Anzac Day lockdown left the sub-branch unable to open on its biggest day of the year, which attracts six-figure revenue and can cushion the impact of leaner trade periods through the year.

Over the past eight weeks it was selling takeaway before resuming their Friday night meals service.

"Economically the only reason we're doing it now is to try and pay the bills," Ms Chamberlain said.

"We're not making any money out of it.

"We lost Anzac Day, which you would understand given the climate back in April, which is our greatest income day and we're going to lose Remembrance Day to Albury where they're having a nice service at St Matthew's Church.

"We're trying to work out if we can sell poppies on this side of the border and have a small ceremony, but having people back to the club is not manageable."

Ms Chamberlain said the overall financial impact was unclear, but it would be devastating.

"We haven't analysed fully but we have a patriotic fund which is where all the welfare funds come from and there's nothing gone in it since this started," she said.

"I know committee members have paid their own money for produce and food to still serve the meals.

"We're still solvent, we can't operate in the red but we're going backwards very quickly."

Ms Chamberlain said the club had applied for a $5000 government outdoor dining grant and if successful it would be spent on lighting and promotion.