Victoria will shut down all non-essential activity across the state over the next two days and bring the end of the school term forward to Tuesday in a bid to combat the spread of coronavirus.

Key points: The decision on whether to re-open schools after the holidays will be made on advice from the chief health officer

The decision on whether to re-open schools after the holidays will be made on advice from the chief health officer Premier Daniel Andrews said the measures were needed to prevent more people dying and hospitals becoming overwhelmed

Premier Daniel Andrews said the measures were needed to prevent more people dying and hospitals becoming overwhelmed It comes as the number of cases in the state rose by 67 to 296

In a statement on Sunday afternoon, Premier Daniel Andrews said Victorians would still be able to go to the supermarket, the bank, the pharmacy and other essential stores, like petrol stations and convenience stores.

Freight, logistics and home delivery are also considered essential and will remain open, Mr Andrews said.

NSW and the ACT have announced similar shutdown measures.

Schools will remain open on Monday, but the holiday period will be brought forward by a week to Tuesday.

"This is not something that we do lightly," Mr Andrews said.

"But it's clear that if we don't take this step, more Victorians will contract coronavirus, our hospitals will be overwhelmed and more Victorians will die."

Mr Andrews said all the measures were "consistent with the health advice provided by the Victorian chief health officer".

He said the decision on whether to re-open schools after the term 1 holidays would be determined following advice from the chief health officer.

Only essential services — such as supermarkets, banks, pharmacies, petrol stations and convenience stores — will remain trading during the shutdown. ( ABC News: Ron Ekkel, file photo )

The statement did not provide an exhaustive list of what was defined as an essential service, but said more details would be provided on Monday.

Before the announcement, Department of Transport head of transport services Jeroen Weimar told the ABC public transport would continue until the medical advice was to stop.

The Premier's office said it would not be providing any further comment or clarification until after Sunday night's National Cabinet meeting.

Concerns about losing 'safe place' at school

In the Melbourne suburb of Seaford, father Rowan Murphy said he would focus on trying to keep his kids active through any potential school closure.

"Being cooped up all day is going to be a nightmare for parents and [the siblings]," he said.

His 12-year-old son Tom said it would be "a change from the usual routine" and he was not sure how he would go without a routine of school and junior sport.

"I'll try my hardest to try and get the best out of it," he said.

While many children might be excited about the prospect of more time at home, there are concerns for the children not in that position.

"We're mindful that for many students school is a very safe place for them," Emma King, CEO of the Victorian Council of Social Services, said.

"Unfortunately homes sometimes are not a safe place, we see family violence escalate at times of crisis."

An announcement about term two will be made on the advice of the chief health officer. ( ABC News: Tim Swanston )

Governments have announced a suite of measures to respond to the economic impact of the pandemic, including a "coronavirus supplement" and an increase to the Jobseeker allowance announced by the Prime Minister today, and a $1.7 billion package announced by Mr Andrews yesterday.

Victorian Trades Hall Secretary Luke Hilikari said workers' safety was a priority, so "if this is a decision that had to be made, we're glad it got made sooner rather than later".

"But what we want to make sure is that if workers get sent home, if your business gets shut down, that workers continue to get paid a wage."

Mr Hilikari said Australia could follow in the footsteps of the UK, which will give grants to cover 80 per cent of a workers' salary is businesses kept them on staff.

"What we want to avoid is a Qantas scenario," Mr Hilikari said, referencing the fact that 20,000 Qantas workers were stood down last week.

Cases rise to nearly 300 as health officials encourage social distancing

Earlier on Sunday, health authorities confirmed 67 new COVID-19 cases had been recorded on Saturday, bringing Victoria's total to 296.

The state's chief health officer, Brett Sutton, said only three cases were confirmed to have been acquired through community transmission.

Deputy chief health officer Annaliese van Diemen reiterated that new social distancing rules had come into force, including limits on gatherings and restrictions on visitation to aged care facilities.

Dr van Diemen praised Victorians for their self-distancing efforts but said more needed to be done.

"We need to keep encouraging friends, family and co-workers to be vigilant and keep going with these social distancing measures and keep supporting each other," she said.

She encouraged people to reconsider gathering socially.

"Whether you can do it by Skype instead, or whether you can do it very separately from one another and still maintain that one person per 4 square metre spacing, even in private residences," she said.

Dr van Diemen says Victorians need to do more to combat the threat of COVID-19. ( ABC News )

Dr van Diemen said health authorities were hoping that Australia would not end up in a situation like in Italy, where thousands of people have died.

"That's why there are national discussions on a daily basis to make sure we don't end up like Italy in a couple of weeks time so that is why people must — must — continue to continue to abide by the directions and recommendations that are being made," she said.

Of the 296 confirmed cases, 256 were in metropolitan Melbourne and 25 in regional Victoria.

Eight cases were recorded in the Greater Geelong area, three in Ballarat, two in the Surf Coast area, two in the Warrnambool area and two in the Macedon ranges.

The local government areas of Latrobe, Yarriambiack, Gannawarra, Hepburn, Moorabool, Mitchell, Mildura and Greater Shepparton have all recorded one case.

Six people were recovering in hospital, and Dr van Diemen said three people were in intensive care.

Isolated to receive food packages

The packages will contain two weeks worth of food, personal care items and other essentials depending on need. ( ABC News: Rosanna Ryan )

The State Government earlier announced emergency relief packages would be provided to people who are self-isolating.

Minister for Disability, Ageing and Carers Luke Donnellan said people in mandatory self-isolation, who have little or no food and no network of family and friends to support them, would be eligible for the emergency assistance packages.

The door-to-door program is set to begin on Monday, providing each household with a two-week supply of essential goods.

The food packages will include items such as long-life milk, pasta, cereal, canned vegetables and sugar.

Personal care packages which include soap, toothpaste and deodorant will also be distributed to eligible households.

Additional items such as nappies or baby formula may also be provided depending on the needs of the household.

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"We need to look out for each other over the next few months, but for people who have no-one nearby to support them, we'll make sure they get what they need," Mr Donnellan said in a statement.

"There is plenty of food for all Victorians so please don't take more than you need.

"But if you do find yourself isolated, and can't access the basics, we have emergency relief packages for you."

Mr Donnellan said people who were not eligible for the emergency relief packages were encouraged to be self-reliant and call on the help of family and friends.

The relief packages program is being co-ordinated by the Red Cross in partnership with Foodbank Victoria under the direction of the state relief coordinator.

To request a package or for more information about the support services call the coronavirus hotline on 1800 675 398 or visit dhhs.vic.gov.au/coronavirus.

Read the Premier's statement:

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