Victoria has recorded another 403 new COVID-19 cases and five deaths.
Premier Daniel Andrews also announced a $300 payment for workers who take a COVID-19 test and need to isolate but do not have sick leave.
"What we've got at the moment is people who feel unwell, but don't go and get tested quick enough because they're fearful of not being able to go to work," Mr Andrews said.
"This $300 payment will go a long way to supporting families and having them make much better choices.
"If you're sick, get tested quick and then isolate until you get a test result."
Unions had been calling on the government to compensate people who were forced to isolate and take a financial hit.
A tram passenger wearing a mask in Melbourne. Source: AAP
The latest victims include two men - one in his 50s and the other in his 70s.
The remaining three are all connected to aged care - a woman in her 70s and two men in their 80s and 90s.
There are now 3,630 active cases across the state.
The death of the man in his 50s has prompted the government to urge younger people to take the threat of coronavirus more seriously.
"This is not just something that affects people that are frail and aged," Mr Andrews said.
"It would be wrong to assume that young people are somehow immune to this. Even otherwise fit and healthy young people can get sick and can die from this virus."
Victorian Health Minister Jenny Mikakos said there are now four children in hospital with COVID-19.
The state government had earlier announced there would be a $1,500 payment for eligible workers if they test positive and are set to lose income.
The United Workers Union Victoria said while the $1,500 payment was welcome, it "does not go far enough and was not rolled out fast enough".
Throughout the health crisis, the union has called for a benchmark paid pandemic leave of two weeks for all workers as a minimum standard.
Epidemiologist and public health specialist Dr Tony Blakely said workplaces also needed to get smarter, particularly in ways employees were moving around.
"We need to reduce the number of people, such as cleaners, moving between aged care homes, for example. We also need to reduce the number of tradies moving between construction sites," he said.
The state has now experienced 18 consecutive days of triple-digit increases.
People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits.
If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.
