Victoria has recorded 217 new COVID-19 cases and another three deaths but authorities are cautiously optimistic.
A man in his 80s, a woman in her 80s and another woman in her 90s are the latest Victorians to die from the virus, taking the state's death toll to 35 and the national toll to 119.
Saturday's 217 cases come after 428 were recorded Friday in Victoria's latest one-day increase since the pandemic began.
Chief Health Officer Brett Sutton says the latest numbers are "a relief" in comparison.
"But it's a number that would have shocked us all a month ago," he told reporters.
"We need to remember it's still a high number."
Of the latest cases, 11 are connected to known outbreaks, one is in quarantine and 205 are under investigation.
The number of healthcare workers with COVID-19 has jumped by 11 to 405 cases.
There are now 2608 active cases across the state.
Of those, 110 are in hospital, 25 in intensive care and 18 on ventilators.
Premier Daniel Andrews said the latest numbers were encouraging but warned it was just one day.
"We'd want to see a pattern where there was stability and then a decrease in these numbers," he said.
New cases have been linked to staff across three aged care homes, including at Ballarat's Bill Crawford Lodge and Bendigo's Mercy Health Bethlehem Home for the Aged.
Werribee's Glendale Aged Care home has a total of 23 cases. There are 13 at Estia Health Heidelberg and nine at St Basil's Homes for the Aged at Fawkner.
The outbreak at Truganina's Al-Taqwa College is at 164 cases while there are 33 cases linked to Brooklyn's JBS abattoir.
Epping's Northern Hospital has a total of 21 cases and Heidelberg's Warringal Private Hospital three.
There are also five cases linked to Clever Kids Child Care and Kindergarten at Ashburton.
Meanwhile, residents at a North Melbourne public housing tower are preparing to come out of a hard lockdown.
The 33 Alfred Street tower will move to stage-three restrictions from 11.59pm on Saturday.
But up to one third of residents, who either have the virus or are a close contact of someone who does, will be required to remain in their units until they're cleared.
Victoria's ombudsman is investigating the treatment of people across nine public housing estates, which were completely locked down earlier this month.
Concerns were raised about communication with the residents and their access to food, exercise, fresh air, and medical supplies and care.
Mr Andrews played down the inquiry.
"The advice (about the towers) was very clear: shut them down and shut them down now," the premier said.
"The ombudsman can look at whatever she deems appropriate, that's entirely a matter for her."
Australian Associated Press