Victoria has recorded the deaths of a further 41 COVID-19 patients, the largest daily increase to the toll for more than a year.
The daily death tolls include a number of recent deaths reported to health authorities and do not indicate that all the deaths occurred on the previous day.
It is the biggest daily increase since 59 deaths were reported on September 4, 2020.
"We send our thoughts to those people's friends, families and loved ones," Department of Health deputy secretary Kate Matson said.
The number of people in hospital with the virus has fallen to 687, down from 707 on Friday.
Of those patients, 80 are in intensive care units and 31 are on ventilators.
The state recorded another 7,810 new COVID-19 infections.
That figure is comprised of 5,099 rapid antigen test results and 2,711 positive PCR tests.
It is the lowest figure since 7,172 cases were reported on January 2, when the testing system was under immense strain.
It brings the number of active cases across the state to 63,409, down from 65,968 a day earlier.
New infections and hospitalisation numbers have been on a downward trend since mid-January, with a slight uptick when students returned to schools.
"We have just come down off our highest case load that we've seen throughout the course of the pandemic," Ms Matson said.
"So it's not unexpected that our deaths will increase, just because we've seen higher case numbers. It's very sad."
About 43 per cent of the adult population has received at least three doses of a COVID-19 vaccine.
And about 48 per cent of Victorians aged between five and 11 have now had at least one vaccine dose, after the rollout for that age group began on January 10.
Ms Matson said it was a great achievement to have nearly half of that age group vaccinated in just 26 days.
"We encourage the other half to make bookings," she said.
Nearly 3,000 students test positive in first week of term
More than 2,900 students and more than 400 teachers tested positive to COVID-19 in Victorian schools' first week of term.
"This isn't unexpected."
Many of those infections were detected through the "strong recommendation" that teachers and students use a rapid test twice-weekly in mainstream schools and every day in specialist education settings.
There are about 1.1 million students currently enrolled in Victorian schools.
No schools have been closed, despite the infection spike, with contact tracing aimed at keeping classrooms open.
Ms Matson said the department was expecting to see case numbers staying about their current level as people increased their movement around the community.
City businesses 'decimated'
Meanwhile, restaurant business leaders and the state opposition have pleaded with the Premier Daniel Andrews to allow workers to return to Melbourne's CBD, saying businesses are being "decimated".
Opposition spokesman for small business and CBD recovery David Southwick joined restaurant chief executive Chris Lucas at Melbourne restaurant Chin Chin to urge the government to help revive the city.
They said 60 per city of city coffee shops had "gone to the wall".
They called for a return of office workers as well as an end to mask mandates and capacity limits.
Working from home is expected to continue for the majority of office workers. But Mr Southwick said that was turning central Melbourne into a ghost town.
"The revelations today that he [the Premier] wants to kick the can down the road again and give us more uncertainty as to when workers come back is providing zero confidence to our city, our workers and the economy," he said.
Mr Lucas said he was "pleading with the Premier to listen".
"Listen to small business, listen to workers, we need our city back, we're begging you to drop these restrictions," he said.
