The new legislation makes the releasing of balloons "littering" and "illegal" from the start of July across the state, in a big win for Zoo Victoria and environmental campaigners.
Under the Environmental Protection Act, companies will be up for fines of between $4956 and $82,610 for the release of balloons, with maximum penalties of $16,522 for individuals.
"Wildlife can be seriously harmed or killed by balloons and their attachments," the EPA said.
"They can become entangled or ingest balloon litter...marine mammals, sea birds and turtles often mistake them for food.
"In Victoria, seals and other animals have been known to become entangled in balloon ribbons which can cause lasting damage."
Suggested alternatives to balloons include blowing bubbles, floating flowers, crafting recyclable bunting and decorations or planting a tree.
The EPA recommends against using balloons outdoors, or to keep them strongly secured and dispose of clips and ribbons if use is "unavoidable".
Zoos Victoria has been campaigning for the ban for months, and called the decision "good news" for seabirds.
A Zoos Victoria petition racked up 230,000 signatures against the use of balloons at outdoor events.
"Balloons are the deadliest form of litter when swallowed by them," a spokesperson said.
The CSIRO found seabirds were up to 32 per cent more likely to die when they swallow balloons as opposed to any other type of hard plastic, and called balloons one of the deadliest forms of litter to marine wildlife.
"We love balloons, but when they’re used outdoors they can escape into the environment and end up in oceans or waterways, harming and even killing precious wildlife," the spokesperon said.
Since 2016, Victorian campaigner Amy Motherwell has petitioned on change.org for the laws to come into effect with grassroots organisation Balloons Blow.
“As balloon releases are becoming more and more prevalent in celebrations, memorials and at charity events, it is imperative now that laws be made, nationwide, to put an end to the deliberate littering of our environment and the needless threat to our wildlife," she said.
But reactions in the Goulburn Valley are mixed.
While Facebook user Graeme Martin said the announcement was "about time" to protect wildlife and stop rubbish, others lamented the implications on birthday parties and gatherings.
"There goes my idea for Nan's birthday," Neesh Maher said, and Lesley Ladgrove said it confirmed her thoughts that "the world has gone mad".
"Why should we be robbing people the simple pleasure?" Graham Martin added.
But, as Julie Amohanga replied: "they have a huge environmental impact when released. They aren't banning balloons, just releasing helium filled balloons into the environment...common sense really."
The laws are in place, but the jury is out.
