Premier Daniel Andrews has announced all non-essential retailers and some construction sites in Melbourne will close under new restrictions, but regional Victoria will avoid the harshest restrictions.
In regional Victoria, abattoirs will be limited to no more than two-thirds of their normal staffing levels. Staff will be kitted out in full PPE and subject to routine testing.
It comes as 429 new cases of COVID-19 were detected in the last 24 hours, and 13 people died.
Premier Daniel Andrews announced the mass shutdown of businesses in Melbourne would last for six weeks.
He said in Melbourne only residential construction that is already underway will be able to continue as well as construction of critical infrastructure and infrastructure connected to essential services.
Under the new classification, the majority of Melbourne retailers will have to close. Supermarkets, grocery stores, service stations, pharmacies and post officers are among the exempt businesses.
Special exemption to operate has to be sought from the Victorian chief health officer.
Businesses in Melbourne and Mitchell Shire will be eligible for $10,000 grants, while regional Victorian businesses can apply for $5000 grants.
Yesterday, Mr Andrews declared a state of disaster across Victoria.
The state recorded 671 new cases of coronavirus yesterday and seven deaths.
Watch him speak below. Please allow a moment for the video to load.
Melbourne has moved to stage four restrictions, while the rest of the state will revert to stage three restrictions from midnight Wednesday,
Mr Andrews aid under stage three restrictions there were only four reasons to leave the house - education, work, caring and to shop for essentials.
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Many businesses will have to close, with cafe and restaurants having to move to take away only.
Secret Cup owner Jane Keats told The Border Mail yesterday she didn't know how her business would survive the latest restrictions and said the 'emotional rollercoaster' was affected the mental health of people in hospitality and tourism.
From Wednesday, all Victorian schools will return to 'remote and flexible online learning', but special schools and children of essential workers could still attend.
He said more students would be allowed at regional schools because more parents would be working.