From March 31, drivers with a full licence will be banned from touching unmounted portable devices including phones, tablets and laptops except when they are parked - even when the devices are turned off.
Drivers will also be prohibited from keeping portable devices on their laps or any part of their body - unless they are in a pocket or pouch - along with passing them to someone else, or looking at a device held by another person.
As for mounted, wearable and in-built devices, fully licensed drivers must not scroll on them, display text messages or social media, emails or photos.
Playing videos or games, taking video calls and entering text, numbers or symbols are all forbidden under the new rules.
Learner and provisional drivers will essentially be banned from using devices entirely while on the road, outside of a couple of exceptions. They will be allowed to use mounted devices to play audio and for navigation, but only if it's set up before their journey starts.
They must pull over and park to change a song or enter a different address, but they can briefly touch inbuilt devices to adjust their navigation settings, climate controls and audio functions such as the radio.
Learner and provisional drivers will not be allowed to use voice controls.
Fully licensed drivers are allowed to briefly touch mounted and in-built devices to initiate, accept or reject calls, to play audio, adjust volume or use a function designed to help them drive.
They are also allowed to use a navigation functions and those designed to monitor a driver's behaviour or condition, or to carry out a professional driving task.
Paying with a device at a drive-through is allowed, as is connecting a device to a vehicle's Bluetooth before driving.
New AI-enabled camera systems will become operational on Victoria's roads in the coming months to catch distracted drivers, able to capture high-resolution images of passing vehicles in all conditions and detect phones and seatbelts.
Drivers will have a three-month warning period after the technology kicks in, before they will face $555 fines and four demerit points for driving distracted.
Roads and Safety Minister Melissa Horne on Tuesday announced the upcoming changes in a press release.
"Distraction is deadly – which is why we're introducing these new road rules to protect the lives of Victorians," she said.
"Everyone has a role to play in keeping our roads safe, so when you're driving, please make the right choices – pay attention and don't be distracted."
The rules will bring Victoria into line with the Australian Road Rules, with distraction involved in at least 11 per cent of fatalities, the government said. One in three drivers admit to using their phone illegally.
The rules also apply to wearable devices including smart watches.
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