Smokers will be banned from lighting up at all outdoor dining areas in Victoria within two years.
The ban will cover restaurants, cafes, takeaway shops and licensed premises from August 2017.
The state government says support for smoke-free dining continues to rise, with the latest Cancer Council Victoria research showing 73 per cent of Victorians support the ban.
The government wants to consult the community about the proposed ban and give venues time to prepare for the change, and will introduce the legislation into parliament in 2016.
"We know that smoking kills, and we know that second-hand smoke puts the health of non-smokers at risk," Health Minister Jill Hennessy said.
"These new bans will ensure all Victorians can enjoy a meal outside with their family and friends."
Smoking bans inside restaurants started in 2001, followed by workplaces, pubs and clubs.
Smoking is now also banned at many public building entrances, train stations and tram stops, in cars carrying children, and within 10 metres of playgrounds and skate parks, sporting venues and within public swimming pools.
Earlier this year, the government brought forward bans on smoking within four metres of the entrances of public hospitals and community health services, schools, childcare centres, kindergartens and preschools and many government buildings, including parliament, courts and police stations.
Smokers face on-the-spot fines of $152 for smoking in Victoria's banned areas, with a maximum penalty of $758.
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