See http://www.the-civil-lawyer.net/2013/03/new-costs-regime-for-victoria-supreme.html for a good explanation of the ‘standard’ and ‘indemnity’ bases on which costs may be awarded.
If there is an award of party/party costs, it is more than likely that it will be on the ‘standard’ basis (ie all costs reasonably incurred), rather than the old ‘costs incurred on a necessary and proper’ basis.