The Victoria Government is undertaking "detailed work" to see if the state would enter stage four lockdown, the premier said.
Any move to tougher restrictions, including stage four lockdown, in Victoria would come at a huge cost to the economy and people's wellbeing.
Premier Daniel Andrews stressed now is not the time to speculate what further restrictions would look like and said the data will inform any decisions that are made.
"Today is the day to share the fact that we are doing this detailed work, this data will inform the advice and the advice will inform whatever settings we need to put in place as part of a next step," Mr Andrews said.
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"Exactly what that will be, when it will be, how long it would need to operate for, all of that would be for another day."
The state's Chief Health Officer Professor Brett Sutton said health authorities weighing up further restrictions are making "impossible decisions in a lot of ways".
"We are balancing harms – the harms of what increased cases over time would be, and the unfolding aged care tragedy that we have right now and all of the other consequences that happen when you have got increased restrictions," Professor Sutton said.
"It is a balancing act – we absolutely have to get the cases down because if we don't do that, there will be ongoing consequences for everyone into the future, but we're totally mindful of those broader impacts."
He also warned the economic and social consequences of further increasing Victoria's restrictions will be huge.
"The impact on businesses, the impact on livelihoods, the impact on people's emotional wellbeing, is significant," Professor Sutton said.
"It may be the case that an intervention in a certain area will do what is needed."
He noted the data analysis currently being conducted would look at where more measures were needed.
Mr Andrews ruled out increasing fines for Victorians who broke health measures including home quarantine.
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Home checks on people with the virus yesterday found one in four were not home despite being under orders to self-quarantine.
He says on-the-spot fines of $1652 were "not an insignificant matter".
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