The Victorian government has eased COVID restrictions but continues to review its border settings daily.
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From 11.59pm Thursday night, mask requirements will be removed for schools and most workplaces in Melbourne in line with regional areas.
Greater density requirements of one person per two square metres will also apply for venues including hospitality, gyms and physical recreation venues, community facilities, creative studios and places of worship, provided there is a COVID marshal on-site to ensure patrons are completing the QR code check-in process.
Outdoor stadiums will be opened up to host 75 per cent of their capacity, up to a cap of 40,000 people while indoor stadiums will also open up to 75 per cent to a cap of 7500. The 75 per cent will also apply to theatres, up to a cap of 2000 people.
Health minister Martin Foley said the new settings would apply for at least two weeks but were subject to change.
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Acting Chief Health Officer Deb Friedman said she was pleased the government was able to ease restrictions.
"These steps are taken recognising the extraordinary achievements Victorians have made overcoming this outbreak, but we also recognise the significant risks that remain on our doorstep," she said.
Currently Greater Sydney is classed as a red zone under the Victorian government's traffic light system, while the rest of NSW and ACT is orange. Border zone residents do not need a permit to cross into Victoria.
There are also red and orange zones in QLD.
"We're continuing to review our travel permit systems daily based on changing epidemiology," Professor Friedman said.
"Where there are updates we are going to provide them with as much lead time as possible so Victorians know what to expect. In the meantime we still continue to advise Victorians not to travel to orange or red zones."
It comes as Victoria marked a week with no new locally acquired cases reported.