A five-kilometre limit for NSW residents entering Victoria, described as a "de facto border closure", could stay beyond lockdown lifting south of the Murray.
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Indigo mayor Jenny O'Connor described it as a "de facto" closure to NSW and said a statewide lock-down there was needed.
"This five kilometre limit (Chief Health Officer) Brett Sutton has put in place is just an attempt to try and reduce the risk to Victoria," she said.
"Our businesses are closed ... that's the work we've been doing, at huge expense, while Albury and upwards are pretty much 'business as usual'.
"I'm calling on the NSW government to do the right thing ... by doing a proper lockdown that extends across the state.
"There is still a great deal of freight and business movement."
It is unclear if any removal of reasons to leave home in Victoria would trigger the lifting of the limit, given its introduction coincided with the designation of "an extreme risk zone" in NSW.
Despite advice received by Federation council on Saturday morning that there would be no change for border bubble residents following the midnight announcement by Victoria, mayor Pat Bourke said enforcement of the limit had been observed.
"I am hearing conflicting stories from local residents that were advised over the weekend that they were not permitted to be in areas where they had travelled past 5km," he said.
"We know from the situation last year that communication is key when it comes to imposing restrictions on us border communities as we operate as one community, so to hear these stories is really concerning."
Cr Bourke said he hoped that lessons learnt from last year would be applied.
"I encourage both state governments to continue to work closely with the Cross Border Commissioners and local councils," he said.
"We are the closest to our people, we understand the real impacts and it is important that we have a seat at the decision-making table.
"Our economic recovery throughout the border regions is ongoing, and further harsh restrictions would have a detrimental impact for hundreds of local businesses.
"I respect that public health is a priority, but there needs to be sensible decisions in place for border communities."
Cr O'Connor said she did not want her community impacted by the limit but it was a "dilemma" given the risk in NSW.
"Doctors can come across, I think the tradies can come across as long as they're working within the regulations of lockdown in Victoria - and we expect that will lift on Wednesday - I don't think it's going to be an impact in that way," she said.
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"What worries me is the general slackness of the restrictions in NSW."
The Victorian Department of Health updated its advice on Saturday, noting the limit on travel "to exercise or obtain necessary goods".
"If you live outside Victoria, and 2km away from the border, you are able to travel 3km into Victoria and would need an exemption or exception to travel ... further afield," it states.
"For persons outside of Victoria, but in a border bubble community, the 5km limit does not apply to obtain goods or services for health or medical purposes, or if the 5km limit would make it impractical to get necessary goods and services."