Victoria has announced a record 2738 new cases, along with four deaths, on Tuesday.
The jump comes after 1999 new infections were announced on Monday along with three deaths.
There are 361 people in hospital, with 69 in intensive care and 33 needing a machine to breathe.
“Our thoughts are with those in hospital, and the families of people who have lost their lives,” state health authorities said on Tuesday.
It is the highest ever number of daily cases recorded in Victoria.
The previous record was on October 14 when there were 2297 cases.
There were 66,683 tests conducted on Monday.
It comes after 1608 new cases and two deaths were recorded on Boxing Day, down on 2108 cases and six deaths on Christmas.
The fall in cases numbers could have been because of a number of testing sites that were closed over Christmas and Boxing Day.
On Monday, testing sites at Albert Park, Montague Street, Bourke Street, Glenroy, Monash, La Trobe Bundoora and Victoria universities were all closed before 9am as they reached capacity.
There are now 17,821 active cases in Victoria.