Three women have died and another 374 Victorians have tested positive to the disease.
Premier Daniel Andrews confirmed the women aged in their 80s, 90s and 100s died overnight, bringing the number of deaths in the state to 42 and the national toll to 126.
There are now 3078 active COVID-19 cases in the state and 174 people in hospital, 36 of whom are receiving intensive care.
“It’s always challenging to analyse any one day’s results, you'd like to see numbers coming down,” Andrews told reporters on July 21.
Victoria’s Chief Health Officer Brett Sutton said community transmission did appear to be heading down.
“We have seen some stabilisation in some postcodes especially the postcodes where there have been restrictions for a long period of time,” Sutton told reporters.