Victoria's five-day "circuit breaker" lockdown has ended, however authorities have warned more positive coronavirus cases linked to the Holiday Inn outbreak could emerge.
Victoria recorded zero new locally acquired coronavirus on Thursday and one new case in hotel quarantine.
The results came from over 30,000 tests and marked Victoria's second day in a row of zero cases.
Schools, offices, restaurants and shops will be able to reopen from Thursday, and people will be allowed to leave their home for any reason.
Masks, however, will remain mandatory indoors and outdoors when physical distancing isn't possible, while home gatherings will be limited to five visitors, down from 15.
Public outdoor gatherings are also limited to 20 people, down from 30.
Gyms, community facilities and entertainment venues can also reopen, while religious gatherings and ceremonies will be able to resume, subject to density limits.
Fans will also be able to return for the final days of the Australian Open tennis tournament, with crowds at Melbourne Park to be capped at 50 per cent capacity.
The new suite of restrictions will remain in place until 26 February.
Victoria's five-day lockdown was announced last week amid fears the highly-infectious UK strain of COVID-19 had spread from the Holiday Inn quarantine hotel at Melbourne Airport into the community.
The outbreak now stands at 19 cases, while almost 3,500 close contacts remain in isolation.
Victoria's Chief Health Officer Brett Sutton warned positive cases were likely to emerge from that group.
"The incubation period is 14 days. There are literally thousands of people who've been potentially exposed to infectious cases. They need to see out their quarantine period. They need to not be complacent," he said on Wednesday.
He encouraged Victorians to keep getting tested for the virus if they have "any symptoms at all".
Victoria's testing chief Jeroen Weimar said his team would work to "close down" the outbreak over the next nine to 10 days.
"We will see more development, and our absolute expectation and hope is that will be within the primary close contact field, the 3,500 people we've got locked down," he said.
"But if it goes beyond that, we'll be up for that."
Meanwhile, the government's plan to extend its state of emergency powers is looking in doubt after negotiations with key upper house crossbenchers failed.
Reason Party leader MP Fiona Patten said in a statement on Wednesday she would vote against the bill and urged the government to bring forward legislation specific to the pandemic.
States ease restrictions on Victorian travellers
South Australia dropped its border restrictions with regional Victoria from 12.01 on Thursday morning but restrictions on Greater Melbourne will remain in place.
"We will be keeping the greater metropolitan restrictions in place and they will remain until the 14 days since the community exposure is eclipsed and that will be the 25th, next Thursday," Premier Steven Marshall said on Wednesday.
The Western Australia government has announced border bans applying to visitors from Victoria will shift to the "low risk" category, with Victorians allowed to enter the state from 12.01am on Saturday with 14 days of self-quarantining and COVID-19 testing.
The Northern Territory revoked its COVID-19 hotspot declaration for Greater Melbourne from 6pm ACDT on Wednesday, which means travellers arriving from Victoria will no longer have to undertake 14-days' mandatory supervised quarantine.
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