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All elective surgery is set to resume in Victoria by the end of the month, as residents wait to learn if restrictions will be relaxed further.

Victoria reported 8149 new COVID-19 cases and 18 deaths on Wednesday, with the state's easing Omicron wave prompting a plan to lift elective surgery limits.

From Monday, public hospitals in metropolitan Melbourne will be able to perform category two surgery and private metro hospitals will ramp up to 75 per cent capacity for any type of elective surgery, up from 50 per cent.

The elective surgery shackles could be thrown off completely a week later on February 28, at the discretion of Health Minister Martin Foley.

Each hospital will also assess their own capacity based on staff availability and COVID-19 demands, with 44 still treating infected patients.

In regional Victoria, the private hospitals cap will rise from 75 per cent to 100 per cent from Monday and public hospitals will continue to carry out any elective surgery based on their individual capacity.

Victoria suspended all less urgent category two and three surgery in early January as the Omicron variant ran rampant through the community, ratcheting up pressure on the health system

But the state's rolling seven-day average of COVID-19 hospitalisations now sits at 457 patients, dropping from a peak of more than 1200 patients in mid-January. Staff unavailability figures have also fallen by roughly two-thirds to 1400 workers.

Before the month-long suspension of category two and three procedures, Victoria's elective surgery waiting list had ballooned from 67,177 to 80,826 in the final three months of 2021.

Premier Daniel Andrews said he spoke with NSW Premier Dominic Perrottet on Tuesday about ways to reduce the backlog, including a possible elective surgery blitz.

"Where we can work together we will," he told reporters on Wednesday.

"There'll be a time for us to make those announcements. The most important thing is to get those services back on and that's why this morning's announcements are so welcome."

Mr Andrews also flagged he would make some "very important announcements about rules" and "normalising this virus" later this week.

QR code check-ins and venue density limits are currently under review.

With international borders reopening, Mr Andrews cautioned that Victorians will be dealing with influenza outbreaks as well as the virus come winter.

"We are going to finish up with COVID and the flu, and we haven't had that before," he said.

Meanwhile, Victoria Police has confirmed a sixth person has been served a $100 fine for not wearing a mask during an indoor Liberals/Nationals partyroom event at parliament last week.

It is unclear whether the additional fine was handed to Essendon great Kevin Sheedy, who spoke at the event, after five were earlier issued to Opposition Leader Matthew Guy and his colleagues.

VICTORIA'S LATEST COVID-19 FIGURES:

* Hospital cases: 397, down 44

* Intensive care cases: 68, up one

* Ventilated cases: 13, down one

* PCR tests processed on Tuesday: 23,278

* Positive PCR tests: 2854

* Positive rapid tests: 5295

* Active cases: 49,936, down 1031

© AAP 2022

Photo: Victorian Premier Daniel Andrews speaks to the media. (AAP Image/Joel Carrett)

The development of a sustainable water supply for South Australia's north, to help support economic growth, will be examined through a $15 million commitment from the state and federal governments.

The money will be used to develop a business case for the Northern Water Supply project which could include construction of a desalination plant in the upper Spencer Gulf to reduce reliance on the Great Artesian Basin and the River Murray.

Deputy Prime Minister Barnaby Joyce said delivering a secure and sustainable water source would drive the growth of regional communities and industries.

"A safe, reliable and sustainable water source will improve water security, create jobs and help unlock the economic potential of new and expanded opportunities for businesses in the state's north," Mr Joyce said.

To support the business case, the SA Government has entered into an agreement with SA Water, BHP and Oz Minerals to address the region's water needs.

South Australian Premier Steven Marshall said it was important for the government to play a coordinating role to bring together a range of potential customers to make the project possible.

"This project is a once-in-a-lifetime opportunity to secure a brighter future for South Australia and create jobs in an environmentally sustainable way," Mr Marshall said.

"We are always looking for ways to ensure we are using water efficiently because ongoing and secure access to water is integral to economic growth."

BHP Asset President Jennifer Purdie said BHP said the project had the potential to support industry and agriculture in rural and regional South Australia, by improving water stewardship and creating opportunities for future investment and jobs.

"This is a positive step forward in BHP's commitment to make our Olympic Dam operations more sustainable," she said.

"South Australia has an important role to play in producing the high-quality copper the world needs to grow and decarbonise, and these types of projects can help us deliver more sustainably now and into the future."

OZ Minerals Chief Executive Andrew Cole said the company was keen to play a part in collectively exploring a sustainable way forward.

"Water is an essential consumable for our operations and a critical resource for our stakeholders, particularly for the communities in which we operate, so we recognise the need to responsibly consume this water," he said.

"One of our aspirations as a modern mining company is to strive to minimise water use and add value when we do."

SA Water Chief Executive David Ryan in the face of a changing climate it was critical to be thinking ahead to ensure fit for purpose water was secured for the long term.

© AAP 2022

Photo: Deputy Prime Minister Barnaby Joyce. (AAP Image/Mick Tsikas)

New low-cost domestic airline Bonza has unveiled 25 routes it will offer between 16 regional destinations in Australia's eastern states.

The carrier will offer flights between Albury, Avalon, Bundaberg, Cairns, Coffs Harbour, Gladstone, Mackay, Melbourne, Mildura, Newcastle, Port Macquarie, Rockhampton, Sunshine Coast, Toowoomba Wellcamp, Townsville and the Whitsunday Coast.

Bonza says its tickets will go on sale within two weeks and it's aiming to launch its first flight in mid-2022 provided it gets regulatory approval.

The airline has also announced its home base will be the Sunshine Coast Airport in Queensland with a secondary base in Melbourne.

Former Virgin Blue executive Tim Jordan, who's leading the venture, says the carrier wants to attract regional travellers rather than compete with current airlines on capital city routes, such as between Brisbane, Melbourne and Sydney.

He says Bonza will make it easier for travellers to get from region to region without needing to layover in capital cities.

"With destinations ranging from Albury to the Whitsundays, travellers will now be able to fly, instead of impossibly long road trips as well as fly direct without a stopover in a major city," Mr Jordan said in a statement.

"Aussies can look forward to enjoying more time at their destination and spending less of their hard earned cash getting there in the first place."

He also said 20 of Bonza's 25 routes are not offered by other airlines and all but one of the 16 destinations were not served by low-cost carriers.

Bonza's routes will be serviced by five 737 MAX aircraft, which seat 138-204 people, with the carrier planning to have eight planes operating by mid-2023.

The planes will have white and purple livery.

The Bonza head office team will comprise about 100 people, while each plane will require about 50 workers.

© AAP 2022

Photo: Boeing 737-8 Bonza aircraft. (AAP Image/ Getty, Southern Lightscapes-Australia)