The number of people south-west residents will be allowed to have in their home will be reduced to five from midnight Sunday as COVID-19 restrictions and tightened.
Premier Daniel Andrews made the announcement on Saturday after the number of coronavirus cases in Victoria hit their highest level in more than two months.
"I know that's not what people want to hear - but sadly, that is our reality," Mr Andrews said.
"The experts tell us that, largely, the numbers are being driven by families - families having big get-togethers and not following the advice around distancing and hygiene. In fact, around half of our cases since the end of April have come from transmission inside someone's home.
"You can see how this could happen. People feeling relaxed at home. Letting their guard down. Letting old habits creep back. But we are still in a pandemic - and people's lives are still at risk."
Mr Andrews said from 11.59pm on Sunday the number of visitors people could have in their home will be five.
"Outside the home, families and friends can meet in groups up to 10," he said.
"As we've seen across the world, this virus has the ability to turn a few cases into hundreds in a matter of days.
"That's why we also need to delay an increase to gathering limits in businesses and community facilities.
"That means restaurants, pubs, auction halls, community halls, libraries, museums and places of worship - will all stay at a maximum of 20 people in any one space until 12 July. Businesses that were set to open on Monday like gyms, cinemas, theatres and TABs can do so - but again, only with a maximum of 20.
"Community sport for kids and non-contact competition for adults can proceed as planned. Ski season and accommodation facilities with communal spaces will also open, but with increased screening and safeguards in place.
"I know this is not where we wanted to be. And that Victorians will feel disappointed and frustrated. I'm frustrated too. But we have to channel that frustration into action.
"If you do have to see people, keep your distance. No handshakes and no hugs. Maintain good hygiene. Don't share food or drinks. And if you're feeling unwell - stay at home.
"Don't visit friends and family. Don't go on holiday. Don't go to work. Stay home."
Mr Andrews said the government would also provide a $1500 payment for people with a confirmed case or are in close contact and who can't rely on sick leave.
"This is about making sure there's no financial reason for these people not to isolate and to go to work instead," he said.
"That means ensuring those who can work from home continue to do so at least until 31 July. And if you do have people on the job - having a zero-tolerance approach to sickness. Having symptoms must mean you go home, and you get tested.
"The vast majority of Victorians have been doing the right thing. But this is a wake-up call. We cannot be complacent. And the only thing between us and a second wave is what we do next."
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