The fault took about four hours to fix and customers were back on the air by about 6.30am, going by this writer's experience.
iiNet representative Mohammed Ahmed informed users of the restoration of services in a message posted to the broadband forum Whirlpool at 7.29am.
In a statement online, the company said: "The affected network device is now back online and passing traffic as per normal. Some customers may need to power cycle their modem or router to reconnect to the Internet (turn your modem off for a minute prior to turning it back on again)."
This was also the case with users of the company's Netphone and Fibrephone VoIP services.
iiNet is now owned by TPG. There are no details for a media contact on the iiNet site and the last media release there dates back to 15 July 2015. TPG has no media contact details on its website either.
A TPG representative has been contacted for comment.
Monday update: An iiNet spokesman responded today: "Yes, we did experience an issue on Friday morning as a result of a failure in a Gateway device impacting some of our Victorian customer base. This outage lasted approximately four hours.
"Engineers and our vendor were called immediately to begin to resolve the issue, the impacted device was recovered and the appropriate start-up process saw the issue resolved with all customers online by 7.30am. However, some customers were able to reconnect earlier than this."