The lump payments will be similar to those offered to individuals and businesses in New South Wales last week, with the costs split between the Victorian Government and the Commonwealth.
Individuals who have lost more than 20 hours of work per week will be eligible to receive a payment of $600, and workers who have lost between eight and 20 hours will get $375.
The Federal Government will front the payment for areas declared a "COVID-19 hotspot" by Commonwealth Chief Medical Officer Paul Kelly, and the Victorian Government will be responsible for funding payments to the rest of the state.
Greater Melbourne, Moorabool Shire, City of Greater Geelong, Borough of Queenscliff and Surf Coast Shire have been listed as "COVID-19 hotspots" for the purposes of Commonwealth support.
"This lockdown is causing...some significant financial pain," Mr Andrews said.
If you lose the hours and you are eligible, the length of the lockdown does not matter. You have lost those hours, you have lost those wages and you should be supported.
"The Commonwealth will run it, administer it, and we'll pick up the tab, we'll foot the bill (for regional Victoria)."
More than $200 million will also be rolled out to support businesses hit by the economic impact of the lockdown, to be made available from today.
Recipients of the package will be businesses that were previously eligible for grants and already received funding, with payments to be made automatically by early next week.
Any events affected over the weekend will also be eligible to make applications for funding under the package.
There are still 22,000 businesses waiting for their applications to be processed from the previous lockdown, which the Victorian Government hoped would be "resolved" by early next week.
Businesses that missed out on previous payments are able to re-apply for funding.
"It is not a cost to the budget, it's an investment in everyone doing the right thing and avoiding hardship and an investment in making sure we can contain this, these two outbreaks and get this back under control," Mr Andrews said.
But Shepparton Chamber of Commerce and Industry president John Anderson said it was "unacceptable" to lock down the whole state for an outbreak largely contained to metropolitan Melbourne.
“Northern and Central Victoria and southern NSW need to be viewed differently," he said.
“It’s absolutely punishing to put us back under such restrictions.
“I don’t think it’s right they do a broad sweep of the whole state. It would be harder to split off regions but I think it is what they need to do.”
Together, the Commonwealth and the New South Wales government are already spending $500 million per week providing economic assistance to the COVID-19 hit state.
"We'll continue to support that as long as the lockdown goes on, which hopefully won't be too long," Mr Morrison said on Tuesday.
"It’s in the national interest that we now put in place an upgraded set of arrangements for cooperation with the states and territories within that will first be put in place here with NSW when lockdowns enter into more protracted situations."
The Services Australia website where all lockdown-impacted individuals claim the payments has not yet been updated to include detailed information specific to Victoria or when the sums will be available.
"The Australian Government has announced extra support for people and businesses affected by Victorian COVID-19 hotspots and restrictions," an alert box reads.
"More information will be available soon."
Currently, New South Wales residents have been using MyGov via the Services Australia website to claim the payments online.
More to come.
