Melbourne cafés, restaurants and pubs will be allowed to seat up to 40 diners indoors and 70 diners outdoors, subject to density quotients, from November 8, 11:59pm.
The latest easing of restrictions is an increase from the cap of 20 diners indoors and 50 outdoors, and aligns with current regulations in place for regional Victoria venues.
For indoor dining, the four-square-metre rule applies, and a maximum of ten diners are allowed per space.
However, there's a slight easing of rules for indoor dining – separate spaces can be demarcated by temporary structures, or by ensuring at least five metres between groups of 10 diners.
For outdoor dining, the two square-metre rule applies, with a maximum of 10 diners allowed per group.
Additionally, the 25-kilometre travel limit and the "ring of steel" separating metropolitan Melbourne and regional Victoria will lift.
In a press conference on Sunday morning, Victorian Premier Daniel Andrews outlined a further relaxation of capacity limits for Victorian venues in the near future.
From November 22 at 11:59pm, the indoor limit for hospitality venues will increase to 100 indoors, with the four square-metre rule in place, and a maximum group size of 20 diners.
Up to 200 diners will be allowed outdoors; the two-square-metre rule applies.
"That will mean our hospitality venues in two weeks' time, they take a step today, they take an even bigger step in a couple weeks' time, and that's very important for jobs, very important for those businesses, but it has to be done in a safe way," the Premier said.
Victoria has recorded zero new coronavirus cases and no further deaths for the ninth consecutive day, according to the ABC.
"It can't just be done open slather because whilst these numbers are good, what we've all built together is fragile, precious and fragile, and it has to be safeguarded," the Premier said.