The travel bubble pause will be in place for at least 72 hours whilst Australian authorities investigate the source of the latest cluster.
New Zealand Director-General of Health, Dr. Ashley Bloomfield, said that they "feel that it's proportionate and precautionary for New Zealand to put that pause in place now."
The outbreak ends Victoria state's run of zero cases for nearly three months.
Thousands of people in Melbourne have been ordered to self isolate and undergo COVID-19 tests with health alerts issued for several sites, including one of the largest shopping centres in the country.
Victoria was the hardest-hit state during a second wave late last year, accounting for about 70% of total cases and 90% of deaths in Australia.
The state, the country's second most populous, only controlled the outbreak after one of the world's longest and strictest lockdowns.