Anita Michael from Dance School of Distinction said news that face-to-face classes could resume was a relief after months of holding online classes.

"We've been running classes on Zoom and attendance has been pretty good but at the end of the day it's not quite like being at a dance studio with friends," Ms Michael said.

"The social side of dance just as important as learning to dance."

In a regular year term four means the much-anticipated end of year concert and for Ms Michael's young dancers that tradition will continue, albeit in a different form.

"We will be working on some choreography and pieces to present in the shape of a streamed performance because we can't have an audience," she said.

"We will have a very busy four to five weeks. They will be looking forward to getting costumes, all the exciting things that happen in term four. They love to perform so we are working on offering a performance opportunity but it will be very different."

Premier Daniel Andrews announced on Sunday that non-contact indoor physical recreation, including dance classes, would resume for under 18-year-olds with a maximum of 20 people.

Spectators are limited to one parent or carer only where children require parental supervision.

IN OTHER NEWS

Under the same roll-back of the restrictions, non-contact indoor community sport will resume for under 18-year-olds and indoor trampolining centres will be able to reopen for under-18s with the same 20-person limit applying.

Dance schools, particularly in regional areas, had been calling for a change to restrictions on their classes as students returned to school at the start of term four.

A report from Ausdance Victoria released in August revealed 92 per cent of dance studio owners were concerned their business could not survive until March next year, and that 85 per cent of dance studio owners had lost more than half of their income during lockdown.