Premier Daniel Andrews announced step three of the Victorian Government's COVID-19 roadmap will come into effect from 11.59pm on Wednesday.
The changes will allow public gatherings for as many as 10 people and schools will go back in term four (with the details still to be confirmed).
All residents can now have visitors in their home but only from one other household.
Hospitality can reopen for mainly outdoor seated service as well as takeaway.
Although pubs, restaurants and cafes can have up to 20 patrons inside across two areas with a maximum of 10 per zone subject to the four square metre rule.
All retail will be allowed to open – that includes hairdressers and personal care with masks required to be worn during services.
Gyms will remain closed for indoors but exercise and training can take place outdoors with limited numbers.
Other key changes cover travel within Victoria, letting you go anywhere within the Step 3 zone; weddings can have 10 people (including the bridal couple, two witnesses and celebrant); funerals are allowed 20 people as well as those needed to conduct services, outdoor events and venues can reopen in the entertainment sector (subject to pre-approved plans) and real estate gets private inspections back as well as outdoor auctions with a limit on attendees.
Community sport - contact and non-contact - can resume for those under the age of 18.
Those over 18 can only participate in non-contact sports.
"It is a massive thing. It is a very positive thing," Mr Andrews said.
"It is something we should all be very pleased and proud of the job that regional Victorians have done."
Victoria recorded 42 new cases in the past 24 hours with no new deaths.
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