Offenders caught with blood alcohol levels of between .05 and .07 will now have their licences cancelled immediately.
And to get back on the road, they'll need to have cars fitted with alcohol interlock devices.
State Premier Daniel Andrews says the new laws are about protecting lives.
"What we know is that drink-driving, even at a low level causes death,” he said.
“It's as simple as that and if you want to cut the road toll, if you want to keep people safe, if you want to make sure that people are getting home to be with their family, with their loved ones, you have to take some of these steps.
“So we make absolutely no apology for putting in place very tough new laws, because those tough laws will save lives."
Under the crackdown, even low-range, first-time offending drivers will have their licences disqualified for three months.
Every offender will also be required to have an alcohol interlock installed, which is an electronic breath-testing device linked to the vehicle's ignition system.
But installing those devices will be a serious financial hit for drink drivers.
An interlock can cost up to $400 to install and there are monthly maintenance charges of about $200, as well as other fees and fines.
The motivation behind these laws is that interlock systems are more effective than just giving drivers hefty fines, according to Rebeka Smith from the Royal Automobile Club of Victoria.
"Alcohol interlock devices have been proven to be successful in reducing the rates of drink driving and particularly for those who are repeat offender."
Victoria will also target speeders and those driving under the influence of drugs.
State Minister for Roads and Road Safety, Luke Donnellan announced the proposed laws on Thursday, saying there are greater penalties “across the board.”
He's calling for other states to follow suit, and make it a uniform national regime.
