But Melbourne retailers, restaurants and pubs will have to wait to November 2 to reopen.
From 11:59pm tonight, the current 5km limit on travel for people will be extended to 25km, and there will no longer be a time limit on leaving home.
From Monday, Melburnians will be able to get a haircut, see an allied health professional, renovate their properties and wash their cars.
The state reported two new coronavirus cases on Sunday and no deaths, bringing the 14-day average to eight, with 15 cases from an unknown source.
From midnight across Melbourne, tennis courts, golf courses and skateparks will reopen, hairdressers can resume business and as many as 10 people can take part in outside auctions for residential property - an important boost for the housing market.
Melburnians will also be able to get a haircut, see an allied health professional, renovate their home, wash their auto and bid at an auction, though a number of strict safety protocols will be in place.
"This strategy is working and will continue to work", Andrews said.
From that date, people in Melbourne will be allowed to leave their homes for any reason.
In regional Victoria, where numbers are considerably lower, numerous controls have already been eased and pubs and restaurants will be allowed to have more customers from midnight. Up to two people, plus dependents, can visit a household, but only once per day.
Mr Andrews has indicated further restrictions could be lifted earlier than planned if case numbers remain low.
The Premier said the Federal Government originally advised him there were 17 travellers from New Zealand who had entered Victoria, but he had since been made aware more meant to come to the state.
'The bloody-mindedness is unforgivable, ' Mr Frydenberg said on Monday.
"Now is time for the Victorian government to give Victorians their freedom back and allow businesses to reopen in a Covid-safe way".
"We are disappointed that Victoria remains closed for business", Business Council of Australia CEO Jennifer Westacott said.
The Australian Industry Group's Victorian head Tim Piper said businesses and Victorians expected more.
'There is still no long-term coherent plan to rebuild a shattered Victorian economy, ' he said.
Opposition Leader Michael O'Brien said restrictions should have been eased further, especially with respect to small businesses.
Conservative politicians in other states, and the federal government, have been increasingly critical of Andrews' centre-left government for maintaining the strict lockdown in Victoria, saying it was undermining national recovery efforts. 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.