Victoria announced it would impose four-week lockdown in 10 areas in Melbourne city.
Victorian Premier Daniel Andrews has reportedly asked Australian Prime Minister Scott Morrison to divert all worldwide flights from the state's capital for two weeks.
Victoria records 64 new COVID-19 cases on Tuesday when compared to 75 news infections reported on Monday. "It will be deeply painful and damaging for those businesses involved", Andrews said on Tuesday. "If we do not do this now, then I won't be locking down 10 postcodes, I will be locking down all postcodes".
"They will be patrolling throughout these communities and if people are out of their home then they will be politely asked why are you out of your home and if you are out of your home for anything other than a permitted reason then on-the-spot fines apply".
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He added main transport corridors "in and out of these suburbs will be the subject of booze bus-type checks".
Cafes and restaurants would have to revert to takeaway only, just weeks after they returned to seated diners amid a wider reopening of the national economy.
All affected businesses will be given a A$5000 ($5354) grant or a payroll tax refund.
The double-digit increases in the number of new cases of coronavirus in Victoria extend into the 15 straight day.
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The Victorian state government requested all flights be diverted to other states to prevent the risk of imported cases.
Andrews said the flight diversion would last for a fortnight.
"We apologise to many people who have had to make changes because of our change of the date of 20 July but our number-one priority is the health, safety and welfare of all South Australians".
The borders were scheduled to open on July 20, however in the light of Victoria's surge in coronavirus cases, the SA Government has chose to keep the Victorian border closed while considering opening to NSW and the ACT.
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Thirteen of the new cases have been linked to known outbreaks and 20 have been identified through routine testing, while 31 cases remain under investigation.