On the same day Victoria recorded more than 700 daily coronavirus cases for the first time, Premier Dan Andrews revealed the state will ease border rules with NSW by the end of the month.
Mr Andrews said new border rules would come into place on September 30 allowing residents to return home.
"Victorians in an extreme risk zone, which is basically Sydney at this time, will be eligible to return home to Victoria if they are double vaccinated," Mr Andrews said.
Meanwhile, the state recorded four deaths and 766 new infections since Wednesday - all locally acquired.
It is the highest number of daily infections in Victoria ever with the previous highest being 686 on August 4, 2020.
The new cases take Victoria's active case tally to 6666.
There were 62,408 test results on Wednesday in Victoria along with 40,957 more vaccinations being administered.
Acting Chief Health Officer Deb Friedman said the grim numbers should also act as a warning to how people planned their actions in the days ahead.
"Tomorrow is the first public holiday and long weekend that we have had in three months," Prof Friedman said.
"Unfortunately, it is not the time for home visits or group gatherings. If we want to make sure that our next public holiday may afford us some of those opportunities, it is incredibly important, and I know it's tough, to make sure that you don't use this weekend to visit friends, to visit your cousin, to visit your parents.
"In terms of catching COVID, that would be one of the most dangerous things that could be done this long weekend."