Federal MPs across the political divide have praised the efforts of Victorians, as the state woke up to eased restrictions on Wednesday.
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A range of business and travel restrictions and limits around household visits have now been lifted, as the state recorded no new cases or deaths for two days in a row.
However, there is still no return to normal, with masks to be worn at all times outside the home and caps on gatherings.
Victorian-based Labor deputy leader Richard Marles said there is a "renewed sense of confidence, of hope and optimism" ahead of further lifting of restrictions in coming weeks.
While mistakes had been made, and were being addressed, the health response had been much better than other nations, he said.
Treasurer Josh Frydenberg said his fellow Victorians had been "magnificent" and the government would continue to support them as the pandemic continued.
However, the start of parliamentary Question Time on Tuesday also saw Mr Frydenberg fire up over failures in Victoria's response.
"The pain, the cost, the loss of Victorian people - it never should have come to this," he said.
Prime Minister Scott Morrison backed his treasurer, pointing to Victoria's quarantine failures and problems with contact tracing.
"There are so many Victorians who will carry the scars of this lockdown for years to come."
He wants Australians to enter the coming Christmas season "with positivity, with hope, with aspiration, looking forward to what they are going to do".
NSW has two new cases of locally transmitted coronavirus and another 10 in hotel quarantine.
Australian Associated Press
