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Victoria has already been under a state of emergency since March 16.
Melbourne has been placed under so-called "stage four" restrictions - the toughest seen in Australia so far - following the failure of a citywide lockdown that began early last month to curb the spread of the virus.
Queensland is in the midst of hosting record-breaking numbers of AFL games after Victorian teams were relocated to allow the season to continue.
Iran - battling the Middle East's deadliest outbreak - yesterday also reported its highest single-day infection count in almost a month, warning that most of its provinces have been hit by a resurgence of the disease. "All schools in Victoria will also move back to online learning".
The local government has implemented a state-wide night-time curfew, as part of harsh new restrictions created to stem the flow of coronavirus.
"Six weeks versus a slower strategy, a much, much slower strategy that takes up to six months".
Melburnians can only leave their homes between these hours for work, care-giving, medical reasons or on compassionate grounds.
The new lockdown restrictions came into place on Sunday at 6pm (9am BST).
Under the new restrictions, Melbourne residents will only be allowed to go shopping for essentials and exercise within 5 kilometres of their home.
Residents also are restricted to one hour of daily exercise with no more than two people together.
Outside of Metropolitan Melbourne, regional Victoria will be placed under stage three restrictions starting at midnight on Wednesday meaning cafes, bars and restaurants must be closed.
"We can't be certain there's not even further community transmission, even more mystery cases out there", Mr Andrews said on Saturday. "But it is not working fast enough". Andrews accepted that residents "will feel scared and sad and anxious", but told them: "We are Victorians - and we will get through this as Victorians".
Australian Prime Minister Scott Morrison, who oversaw what appeared to be a successful curve-flattening policy of widespread lockdowns and social distancing in April and May, supported the measures, calling them "regrettably necessary" in a social media post.
Victorian Premier Daniel Andrews announced the state was now in a State of Disaster on Sunday afternoon as the COVID-19 death toll continued to rise in Melbourne and surrounding areas.
Mexico overtook Britain to become the third hardest-hit country in virus deaths - after Brazil and the United States - with more than 46,600 fatal cases.
Victoria reported 671 new coronavirus cases and seven new deaths on Sunday, bringing the total number of infections to more than 11,500 and 123 deaths, according to a state government tracker.