Changes were announced on Sunday morning, on the same day the state recorded its ninth consecutive day with no new COVID-19 cases or deaths.
Hospitality venues are the biggest winners of the the final step on the state's road map with up to 100 people allowed indoors under a four-square-metre rule.
Outdoor areas will allow up to 200 with a two-square-metre rule.
Households will also be allowed to accept more guests, with 10 visitors in each home from any household.
Gyms will be allowed 100 people in groups of 20, while indoor sports can cater to 100 people in groups of 20.
Outdoor physical recreation will increase to 500 people in groups of 50, with indoor pools allowing up to 50 people.
The accommodation sector will also see increases on numbers allowed, with a cap of 10 from any number of families at hotels and motels.
Cinemas will also take a major step, with up to 100 people allowed grouped in 20 with a four-square-metre density rule.
Victorian Premier Daniel Andrews said the state had earned the new changes, but needed to remain cautious for the future.
“But there is a fragility to this thing. It is not gone,” he said.
“If we let our guard down, it will be back. Today is a day to be optimistic.
“No-one can assume that because we want it to be over, it is over and because we have had nine days of zero, it is gone and somehow those numbers are the same as a vaccine against this deadly virus. They are not.”
While these changes will likely come two weeks from now, a number of further changes came into effect this morning which has seen a once-divided Victoria become whole again.
Metropolitan Melbourne has been re-united with regional Victoria, with the ‘ring of steel’ and 25km travel restrictions imposed on the state capital now removed.
It means Melburnians are allowed to travel freely throughout Victoria, giving regional towns a tourism boost.
In a win for local clubs, gaming machines will be able to re-open to 10 people, with the number of patrons expanding to a four-square-metre rule on November 23.
A full list of new and planned restrictions are available at the Department of Health and Human Services website.
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