Victoria has had eight more coronavirus deaths but the number of new cases has dropped to the lowest level in almost three months.
The latest fatalities take the state's death toll to 745 and the national figure to 832.
But there were only 28 new cases - the lowest figure for Victoria since the 20 recorded on June 24 - which Premier Daniel Andrews said was a "fantastic outcome".
Of the new cases, 14 are linked to clusters - including five in the City of Casey in Melbourne's outer south-east.
"The cluster, obviously, of concern is in Casey and we are looking at that very closely," Deputy Chief Health Officer Allen Cheng said on Thursday.
The rolling 14-day new case averages have also fallen, to 44.4 for Melbourne and to 2.9 for regional Victoria.
There are 83 cases with an unknown source in Melbourne and one in regional areas.
Regional Victorians awoke to easier COVID-19 rules on Thursday but locked-down Melburnians will have to cope with a so-called "ring of steel" around the city.
Victoria Police have tightened traffic checkpoints on Melbourne's outskirts after rules for people living outside the city were wound back overnight.
Melbourne adults who leave the city without a lawful excuse will now get a $4957 fine.
The new offence comes is designed to deter Melburnians from entering regional Victoria.
It will be bolstered by beefed-up roadblocks, creating lengthy traffic delays as vehicles pass through.
The easing in regional Victoria means pubs, cafes and restaurants will be able to serve people outside with strict density quotas, while outdoor gathering limits will be upped to 10.
Regional Victorians will also be able to leave their homes without restriction and all shops can reopen.
They will still be able to travel via Melbourne to reach other parts of the state, but can only stop for three reasons including food, care and permitted work and study.
Caravan parks and camping grounds in regional areas are also able to reopen from Thursday, but with group booking restrictions.
Melbourne's new case average must stay between 30 to 50 for some of the city's restrictions to be eased as planned on September 28.
Mr Andrews noted factors behind each case had to be considered when weighing up whether to ease restrictions.
Meanwhile, elective surgeries have been ramped up to 75 per cent capacity in regional Victoria.
Melbourne-based elective surgeries are likely to increase to 75 per cent from September 28.
On Thursday, the government also announced $26.7 million in extra funding for kindergartens, ahead of their reopening across Victoria on October 5.
