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From 6pm tomorrow (Friday), more people will be allowed into entertainment venues in Victoria and dancefloors will return.
The new measures will see the 'one person per two square metre' rule scrapped.
QR check-ins will also no longer be required at schools, childcare centres, shops and many workplaces, but will remain at hospitality and entertainment venues.
The indoor mask rules will remain, however this rule could change on Friday next week for more workers in a bid to get more people back into offices.
The State Government has also reduced the quarantine period for unvaccinated international visitors and aircrew.
They will now be required to stay in hotel quarantine for just seven days, instead of the previous 14-day requirement.
Premier Dan Andrews noted hospital numbers were down, which allowed for the new flexibility.
"The trend is good. The trend is positive," he said at a press conference this morning, but noted that despite the declines "you'd never describe it as easy".
When dancefloors were banned in Victoria on January 10, there were 818 people in the state in hospital with Covid-19, compared to 401 today.
78 of those currently in hospital with Covid-19 are in ICU and 16 are ventilated.
The state recorded 8,501 new cases today.
93 per cent of the state's population aged 12 and over have received two doses of the vaccine.
For those 18 and over, 53 per cent have had a third vaccine dose.