As of Friday, October 22, those who have received two vaccination doses who become primary close contacts of a COVID-positive person will only have to serve seven days in quarantine.

This includes people who have visited a Tier One site, such as a pub or restaurant.

Household contacts will still be required to complete 14 days in isolation, however. That particular rule is unlikely to change for some time.

Non-vaccinated people will still have to complete two weeks of quarantine.

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Confirming the new rules today, Victoria's COVID Commander Jeroen Weimar said the eased restrictions were introduced to lighten the load on people caught up as positive cases.

"I'm delighted to minimise the impact not only on individuals with over 60,000 primary close contacts caught up in these positive cases, the significant numbers of those," he said.

"That will help businesses as they start to resume operations and we see a reduced impact of workplace exposure."

Victoria is also set to scrap hotel quarantine for international travellers fully vaccinated.

However, Premier Daniel Andrews says Victoria will not follow NSW in abolishing quarantine altogether for double-dosed international arrivals from November 1.

Instead, he has foreshadowed travellers will be able to isolate at home for fewer than 14 days.

"It will be less," he told Seven's Sunrise.

"If you are double-dose vaccinated, you will be able to quarantine at home and hotel quarantine will be a thing of the past."

The premier has also confirmed Victoria will not lock down the entire state moving forward and instead opt for targeted restrictions in "very narrow circumstances".

"No more statewide lockdowns. What we are moving away from is instead of locking people down, we are locking people out," he said.

"If you are not double-dose vaccinated, you won't be able to go to the pub."

Meanwhile, businesses and councils can apply for a share in a $54.5 million fund to move towards outdoor trading as Victoria emerges from it's sixth COVID-19 lockdown.

The state government on Monday announced the cash so venues can create outdoor dining and bars.

Part of the money will be put aside for a COVIDSafe outdoor activation voucher program of $2000 grants for more than 7000 businesses, valid for expenses including buying and hiring marquees, screens and umbrellas, obtaining insurance and promoting outdoor operations.

Hairdressers, beauty services, retail shops, dance studios and gyms will also be eligible to apply for vouchers.

The remaining $40 million will help local governments create outdoor areas such as upgrading street furniture and creating precincts.

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