Masks are again mandatory in all indoor venues outside of the home for Victorians aged eight years and over, in a bid to curtail rising COVID-19 cases and the spread of the Omicron variant.
Acting Premier James Merlino announced indoor mask rules will be expanded in hospitality, entertainment and office settings from 11.59pm on Thursday.
Face masks will also be required at all major events with more than 30,000 patrons, but can be removed while seated outdoors.
Mr Merlino described the measures as modest and common sense.
"This is a sensible response which will allow businesses to stay open, bars and restaurants to continue to stay open and major events to go ahead," he told reporters.
"Masks are a cheap and effective way to maintain the health of the community - it's something public health experts have been calling for.
"The updated mask rules will remain in place until at least January 12."
Federal health officials "highly recommended" wearing masks indoors and other places where social distancing is difficult at Wednesday's national cabinet meeting, but only states and territories have the power to make the mandate.
Before the Omicron variant, the Victorian government planned to relax mask requirements last week but instead kept them in retail settings, for hospitality workers and on public transport.
Victorians are also recommended to work from home over the festive season and hospitality venues should consider moving to seated service-only.
Health Minister Martin Foley also urged people to "save their dance moves for dance floors in well-ventilated outdoor areas".
Mr Merlino said a lockdown was not being considered because of Victoria's high vaccination rate.
The state government will also pour an extra $31 million into supporting the commonwealth's COVID-19 booster program, while awaiting advice on reducing the third dose interval from the expert immunisation panel.
"The interval needs to be shortened and the interval needs to be shortened immediately," Mr Merlino said.
"That's the view of Victoria. That's the view of New South Wales. That's the view of jurisdictions across the country."
Twenty-eight more pop-up vaccination sites will open in the coming weeks and the state's stable of 50 fixed sites are set to extend operating hours to 12 hours a day across the entire week.
Melbourne's Royal Exhibition Building clinic had been due to close in December but will now remain open until March 2022.
Victoria reported 2005 new coronavirus cases and 10 deaths, marking the state's highest daily infection figure since October 22.
With active cases rising past 14,000, community health service provider cohealth has hired an extra 60 staff to support COVID-19 infected people in Melbourne's west isolating at home during the festive season and into 2022.
It represents a doubling of their staff, who are dropping off festive foods to isolating households on Christmas Day and doing telehealth appointments this week.
Meanwhile, Victoria's testing system continues to strain under the weight of holidaymakers seeking a swab for interstate travel, with at least 20 sites across Melbourne temporarily closed as of 9am after reaching capacity.
© AAP 2021