The state's last active case, a man in his 90s, was discharged from hospital on Monday.
After its second wave ballooned to 7880 cases on August 11, Victoria has gone 25 days without coronavirus deaths or new cases.
The Department of Health and Human Services confirmed the state's last day without an active case was February 29.
Authorities remain wary, with Premier Daniel Andrews again stressing that the threat is not over until a vaccine is available. But he added this was a big day for the state.
"This is a very significant day and every single Victorian can be proud of the part they've played in defeating the second wave," he said.
Mr Andrews was speaking ahead of the release on Tuesday of the state budget, with Victoria borrowing and spending on an unprecedented scale to combat its virus-induced recession.
"There's been a lot of damage, a lot of pain over these last eight-10 months, but it's important that we push forward and create jobs and opportunities," he said.
That's what today's state budget will be all about.
On Monday, Victorians were reunited with cut-off interstate relatives, loved ones and friends, as the NSW border re-opened to end more than four months of exile.
Sweeping changes have come into effect across Victoria this week, with masks no longer needed outdoors unless people are unable to safely physically distance.
They must still wear masks in indoor environments including workplaces, supermarkets and public transport, and carry them at all times.
Other tweaks from Monday include 15 home visitors allowed per day, up from two, while limits on outdoor public gatherings rise to 50 people.
For weddings and funerals, 150 people will be able to come together to celebrate or commiserate.
The same limit applies to cinemas, galleries and museums, and large-scale events can resume if granted a permit.
Large restaurants, cafes and pubs will be able to host up to 150 customers indoors, while smaller venues will be limited to 50 and must keep QR code records.
Mr Andrews outlined additional steps towards normality as well: up to 30 home visitors per day from December 13 - just in time for Christmas - and 25 per cent of staff returning to workplaces from November 30.
The state's virus death toll stands at 819, with the national figure 907.