Four NSW local government areas have been removed from the Victorian government's definition of the border bubble.
Victorian Premier Daniel Andrews, while announcing the end of Victoria's lockdown, said the councils of Wagga, Hay, Lockhart and Murrumbidgee would no longer be considered part of the cross-border region.
"People who travel to Victoria from those four local government areas, you will need a permit and, as you know, we're only granting permits for those who are approved workers and even only then when it is absolutely necessary," he said.
"I take no pleasure in having to essentially lock out those four communities from Victoria but there's a refusal to lock people in Sydney into Sydney so therefore I have no choice but to make these changes."
He foreshadowed there would be further changes, but they would not be announced today.
"We have to do everything we can to keep this virus out of our state," he said.
Mr Andrews said he did not want to scrap the border bubble, recognising the knock-on impacts for businesses and families.
"I don't want it to get to that point," he said.
"That's why keeping the Sydney problem in Sydney and not having it leach out into regional NSW and therefore at risk for Victoria makes sense to me.
"It's not for me to make that decision but we will not hesitate to do what has to be done to keep our state safe."
The Premier said potential future risk rather than any current cases prompted the border bubble change, noting NSW cases had occurred in regional areas.
He had not discussed the change with NSW Premier Gladys Berejiklian before Tuesday's announcement.
The government also announced the end to Victoria's lockdown from 11.59pm Tuesday, with the five reasons to leave home and the five kilometre limit to be removed.
Schools will reopen for all year levels from Wednesday morning.
Pubs, restaurants and cafes can open with some density limits and community sport will return for practice and competition.
Some restrictions, such as no visitors to private homes, will remain for the next two weeks while masks are still required inside and outside.
"I know it's painful, I know nobody enjoys doing it, but it is effective," Mr Andrews said.
The Premier said it was "a fantastic job" to have another day of no cases out in the community while infectious.
He thanked the community and contact tracers for their efforts, particularly the tens of thousands of close contacts, many still in isolation.
EARLIER: Victoria recorded 10 new local coronavirus cases and no new cases acquired overseas.
The Department of Health and Human Services said all new locally-acquired cases were linked to the current outbreaks, and all were in quarantine throughout their entire infectious period.
There were 15,677 vaccine doses were administered and 24,340 test results were received.
Victoria's lockdown is expected to be lifted but a number of restrictions will remain in place to prevent another outbreak of the highly infectious Delta COVID-19 variant.
The ABC reported that schools are set to reopen from Wednesday, and hospitality businesses will be allowed to reopen with density restrictions, as Victoria moves cautiously out of lockdown, according to state government sources.
Premier Daniel Andrews, senior government ministers and the state's public health team met on Monday night to make a final decision on the new restrictions.
An announcement is expected to be made before midday on Tuesday, with students set to return to school and hospitality and retail businesses to reopen.
Melbourne Lord Mayor Sally Capp, who is calling for the reinstatement of JobKeeper, urged the state government to reveal their lockdown call as soon as possible for the sake of businesses.
"We need to know when are we reopening here in Victoria and what will be the restrictions," she told Nine's Today on Tuesday morning.
"The earlier we know that the earlier traders can prepare with their suppliers and with their teams."
When Victoria emerged from last month's lockdown, a number of strict restrictions were kept in place for two weeks, including a 25-kilometre travel rule, a ban on visitors at homes and strict density limits for hospitality, retail and offices.
Some businesses, including gyms and nightclubs, weren't able to reopen.
Mr Andrews has flagged masks will likely remain compulsory in some settings, while Health Minister Martin Foley told reporters on Monday "nothing has yet been finalised".
He said the state was "on the right track" but authorities wanted to base their decision on the most up-to-date and accurate data.
IN OTHER NEWS
The state recorded 11 new local cases on Monday, all linked to the state's current outbreaks of the highly infectious Delta strain.
For a second day, all new local cases were in isolation for their entire infectious period and no new exposure sites have been listed.
The statewide lockdown was called on July 15, after it emerged that a NSW removalist crew visited the state while infectious.
See all the exposure sites here.
It was initially slated to run five days but was extended by a week to 11.59pm on Tuesday, as contact tracers struggled to chase down people before they turned positive.
Mr Foley conceded 22 new local cases over the past two days was a significant figure but said officials took comfort from none spending any time in the community.
- with Australian Associated Press
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