The Australian army has been on stand-by to help evacuate residents in northern Victoria, if, as expected, flood waters continue to rise.
Hundreds of homes have already been evacuated and residents have been moved to six relief centres which have been set up in the state.
Residents are describing the floods as the worst in more than a decade.
Areas of the state were also affected by storms and strong winds, leaving about 40,000 people without power.
The winds brought down trees and power lines, and ripped roofs from houses.
The State Emergency Service (SES) has received more than 2,000 calls for help so far over the weekend.
The Victorian Government has announced relief funds for people affected by the floods.
People who cannot go home and need basic financial help will be eligible for grants of about AU$1,000.
Larger grants of about AU$26,000 will be available for those whose homes have been structurally damaged.
APTN