Kindergarten will be provided free of charge in 2021, the state government has announced.
Premier Daniel Andrews unveiled the $169.6 million policy on Tuesday morning, saying the government wanted to support working mothers, in particular.
"It's all about supporting families... to have that sense of confidence they can provide for those they love the most," he said.
The move is expected to save families about $2000.
"Not only will free kinder save families thousands of dollars - it'll get more kids into kinder, back early childhood services and workers, and help support more parents, especially women, into the workforce," early childhood minister Ingrid Stitt said.
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The government also announced grants will be made available to allow more schools to provide before and after-school care.
Education minister James Merlino said the policy would mean out-of-hours care would be available at almost all government schools.
The state budget will be handed down later this month.
Mr Andrews also commented on the day's coronavirus statistics. Victoria has now gone 11 days without a new COVID-19 infection being recorded.
There remain four active cases in the state. Two people are being treated for the virus in hospital.
He also welcomed news of progress on a vaccine for the virus, although he cautioned it would need to go through a "rigorous process" before being made available to the public.