Victoria has recorded 216 new coronavirus cases and 12 more deaths.
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The deaths take the state's toll from the virus to 363 and the national toll to 450.
Further details are expected to be released by Premier Daniel Andrews on Wednesday.
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It is the lowest number of new cases since July 13.
It comes as Prime Minister Scott Morrison said the state looks to be getting on top of its second wave.
"Obviously the number of deaths we have seen is very upsetting and disturbing," he told Nine's Today show on Wednesday.
"But those (case) numbers look like we are getting on top of it now, which is welcome and we've got to stay the course."
Active cases dropped in Ballarat on Tuesday, in what was the most promising day in Ballarat for weeks.
There were 24 cases in the City of Ballarat, down from 28 on Wednesday. There were also no new cases found.
In Moorabool Shire there are now only four active cases, half as many as there were on Monday.
In Golden Plains there are three active cases, down from four on Monday.
Both Pyrenees and Hepburn remain without an active case, having each had two in total.
Melbourne is in the third week of a strict level-four lockdown, which includes an 8pm-5am curfew, due to end on September 13, while the rest of Victoria is under level-three restrictions.
Thirteen of the 17 deaths reported on Tuesday were linked to aged care outbreaks.
Some 230 aged care residents have died so far.
Most residents were housed in facilities regulated by the federal government, which the aged care royal commission castigated last week for not having a plan to protect the elderly.
But Mr Morrison continues to deflect federal responsibility for the crisis in the sector.
"We regulate aged care, but when there is a public health pandemic, then public health, whether it gets into aged care, shopping centres, schools or anywhere else, then they are things that are for Victoria," he told ABC News Breakfast.
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