Victoria has recorded 867 new locally acquired Covid-19 cases and four deaths, as well as an additional 149 infections from previous days.
It is the state's highest daily figure since the start of the pandemic, surpassing the previous record of 847 cases on Saturday, and rose above NSW's Tuesday figure of 863.
The state's health department said more information would be provided on the deaths later on Tuesday. They bring the toll from the current outbreak to 29.
The department also said an additional 140 cases have been added to Monday's tally and nine cases to Sunday's tally due to test results "incorrectly recorded by a third-party software vendor".
This means there are now 9261 active infections across Victoria.
There were 49,450 coronavirus tests processed and 35,160 vaccine doses administered at state-run hubs on Monday.
It comes as general practitioners and pharmacies in Melbourne suburbs hardest hit by Covid-19 are eligible for grants to help speed up the vaccination rollout.
Premier Daniel Andrews has announced grants of up to $10,000 for clinics and pharmacies in 11 local government areas with high Covid-19 infections and low vaccination rates.
Mr Andrews said the grants would allow GPs and pharmacies to operate additional hours, hire more staff or rent out space to run vaccination hubs.
More than 78 per cent of Victorians aged 16 and over have now had at least one dose of a Covid-19 vaccine, while 47.7 per cent have had two doses.
Melbourne's lockdown will remain in place until 70 per cent of Victorians aged over 16 are double-vaccinated, which is forecast for October 26.
A more significant easing of restrictions will occur when the 80 per cent double-dose target is met, forecast for November 5.
However, some modest changes will be made to restrictions on Wednesday, when the state pass 80 per cent single-dose vaccination coverage.
This includes extending the travel limit to 15 kilometres, as well as the resumption of golf, tennis and cricket and group personal training for up to five fully vaccinated adults.