The 2015 Victorian budget focuses on helping some of the state's 500,000 small businesses through limited tax relief and red tape reductions, and more than $500 million will go into an investment fund aimed at creating jobs in high-growth sectors.

However, the Labor government has dashed business hopes of changes to payroll tax thresholds. Unlike last year's budget, there are not widespread payroll tax cuts, only limited relief for small businesses hiring retrenched workers.

In fact, the government notes money flowing in from taxing the state's businesses will be higher. Payroll tax revenue is expected to grow by 6.2 per cent to $5.4 billion in 2015-16. This is nearly a third of the Victorian government's $19 billion projected tax revenue.

Groups including the Australian Industry Group and Victorian Employers' Chamber of Commerce had wanted the government to lift the $550,000 threshold, and/or reduce the 4.9 per cent payroll tax rate.

As announced at the weekend, the government will introduce a 3 per cent stamp duty surcharge and 0.5 per cent extra land tax on foreign buyers of property, raising $300 million over four years.

At the centre of the Labor government's package is a $508 million "Jobs and Investment Fund", including $200 million for a "Regional Jobs Fund" that will create work in established and emerging industries. The $500 million-plus fund also includes a $60 million start-up initiative to help entrepreneurs get off the ground.

Victorian Premier Daniel Andrews said the fund was aimed at moving towards a higher-skilled workforce and would create 100,000 jobs within two years.

Senior business and industry leaders will be asked to sit on a panel and advise the government on which "job-creating" projects will get the funding.

There's also a $100 million "Back To Work Plan", which will give financial assistance to businesses hiring unemployed people.

Victorian Treasurer Tim Pallas said under this funding, employers would get "payroll tax relief if they hire retrenched workers, unemployed young people or the long-term jobless".

The move follows recent turmoil in the manufacturing sector, including 25,000 job losses resulting from the closures of car manufacturing plants run by Ford, Holden and Toyota.

The Labor government believes many of these workers have "transferable" skills for growing trades such as engineering and construction.

As part of the Back to Work Plan, there will be a $200 million "Future Industries Fund", which will give grants of up $1 million to firms in certain industries. These include medical technology, pharmaceuticals, new energy technology, food and fibre, transport, defence and construction technology, international education and professional services.

The Australian Industry Group's Victorian director, Tim Piper, said the jobs and future industries funds could help manufacturers transition as the automotive assembly wound down over the next two years.

There will be $11.4 million over four years for motor vehicle stamp duty relief aimed at small businesses investing in new mobile plant equipment. The government will exempt all vehicles classified as mobile plants (under 4.5 tonnes) and plant-based special purpose vehicles (over 4.5 tonnes) from motor vehicle stamp duty from July 1. These vehicles include backhoes, excavators, bulldozers, scrapers, tractors and off-road water sprayers.

There will also be $10.4 million over four years for the Victorian Small Business Commission, which gives assistance to small business.

The government has also promised a "comprehensive review" of legislation and regulation that impacts on small business.

Regulation will be removed or redesigned if it has an "unjustified or excessive" impact on small business, and regulators will be subject to new performance targets.

Small businesses in border towns will no longer need to be licensed in multiple states to do the same work, with new "automatic mutual recognition".

The Andrews government said it would also work with the federal government to address "anti-competitive behaviour" identified in the recent competition policy review headed by Ian Harper.

The review recommended several changes that fall under the jurisdiction of the states, such as removing regulations on the ownership and location of pharmacies, and extended trading hours.

Small businesses will also get greater access to the public sector market. Smaller contracts that can be delivered by small firms will be offered in some cases and there will be a commitment to pay within 30 days for contracts under $3 million.

There's also more money for trade missions, including $12 million over four years to bring investors from around the world to Victoria, and $6 million to set up Victorian small business offices in key trading regions including South America, Singapore and Turkey.