The rules came into effect on Tuesday, making street-based sex work legal except for in a small number of circumstances.
The government said workers would feel more confident reporting crimes against them and accessing support because of the change.
Consumer Affairs Minister Melissa Horne said the shift was “an important milestone for sex work decriminalisation in Victoria”.
Workplace Safety Minister Ingrid Stitt said everyone deserved to feel safe at work.
“With a dedicated Sex Work Safety Team within WorkSafe, we’ll make sure sex work is regulated appropriately, with the best guidance and procedures in place to keep workers safe,” she said.
The change falls under the Sex Work Decriminalisation Act 2021.
Under the reforms, people and organisations are also prohibited from discriminating against or refusing someone service on the basis they are a sex worker.
The legislation makes it an offence for sex work to be carried out near schools, care services and places of worship between 6am and 7pm and on holidays.
The second round of Victoria’s sex work reforms is due to come into effect in late 2023, when the sex work licensing system will be scrapped.
Victoria is the third jurisdiction in the country to decriminalise sex work after New South Wales in 1995 and the Northern Territory in 2019.
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