"It is not unexpected in some ways when you have got so many cases in private sector aged care", Victorian Premier Daniel Andrews told reporters in Melbourne.
While most transmission is happening in workplaces, Andrews said some of it was happening in households.
India reported another record surge in daily COVID-19 cases on Friday, taking the total to1.64 million, as the government further eases virus curbs in abid to resuscitate the economy, while also trying to increasetesting.
Regional Victoria has 255 active cases, with 159 in six local areas around Geelong.
"That's why hospitality businesses are staying open but people can't have visitors in their homes'".
Victoria recorded 723 new coronavirus cases and 13 more deaths on Thursday.
The Victorian Opposition says tighter restrictions would be a disaster for the state and is urging the Government to crack down on people who don't abide by the rules, especially people with COVID who aren't staying at home. "One family to another".
Mr Andrews said the state would be unable to look to its economic recovery while coronavirus numbers remained high.
He also announced that from Sunday August 2 at 11.59pm in Victoria, a face covering will be mandatory whenever you leave home - and wherever you live.
Interestingly, masks will now be compulsory in areas where pubs and cafes are still open for dining in. "If you are seated you do not need to have a mask on, so if you are eating or drinking".
Australia was seen as an early coronavirus success story but is now seeing a resurgence of cases, particularly in Victoria.
Masks will become mandatory across Victoria.
The deaths take the state toll to 112 and the national figure to 197.
Half of the new deaths were connected to aged care homes in the city.
However, he maintained that too many people were still showing up to the workplace when they had symptoms.
"I mean, in New South Wales there are no known cases with no known source. s that is the heart of the concern about where this goes from here", Morrison said, talking about boosting testing and contact tracing capabilities.
Last week, the Victorian Government introduced a $300 payment to aid workers forced to self-isolate while awaiting COVID-19 test results, on top of a $1500 hardship payment to support those in isolation after testing positive.
"I understand this will be a big step for some".
Door knocking teams discovered yesterday that more than 130 people who should have been at home weren't.