Victorian state budget 2017/18: new police stations, modernised schools and business tax cuts for the Wimmera

Businesses substantially operating in regional Victoria with at least 85 per cent of their staff living outside metropolitian areas will get a 25 per cent discount to payroll tax.

Victorian Treasurer Tim Pallas said the tax cut would benefit an estimated 4000 businesses and boost regional jobs.

"Regional businesses will now pay the lowest payroll tax in Australia," he said.

Combined with an increase in payroll tax threshold to $650,000 by July next year, the tax cut will see the payroll rate drop from 4.85 to 3.65 per cent and deliver $220 million in tax relief for regional Victoria.

Regional Development and Agriculture Minister, Member for Western Victoria Jaala Pulford said the impact of tax changes for businesses and first home buyers would be  significant.

"It means that there has never been a better time to live, work or invest in regional Victoria," she said.

Mr Pallas said the state budget contained the largest allocation for rural and regional health, transport and education in the state's history.

Horsham will share in $7m to trial methods to improve business internet speeds.

The state government will contribute up to $300,000 to the Horsham Grains Innovation Centre for a business model development to advance agri-science in the Wimmera Southern Mallee.

As part of a $2 billion package for Victoria Police, the state government will  replacing police stations at Warracknabeal, Wycheproof and Wedderburn.

The Wimmera Southern Mallee Regional Partnership, consisting of local government and community representataives, will work with the state government. 

The partnership will develop a business model to advance and improve community and educational resources in the region.

The partnership will also start planning to develop a thriving tourism industry in the Wimmera Southern Mallee region.

The Wimmera’s partnership will share in $29m with eight other regional partnerships to work towards these goals.

Dimboola, Laharum and Yaapeet primary schools will share in $10.2m to modernise, upgrade and regenerate six schools across western Victoria.

That money will also be spent on planning for future upgrades to Stawell Secondary College.

On a statewide level, the budget contains a $1.2 billion surplus in the next financial year and surpluses averaging $2.4 billion over forward estimates.

As previously announced, Ararat's rail line will share in $39 million for stabling the tracks and improve passenger and freight services.

The money is contingent on the federal government paying $1.45 billion to the state government as a bonus for signing a long-term lease for the Port of Melbourne.

As widely predicted, the Wimmera has missed out on money for construction or initial planning towards a $360m proposal to return passenger rail to Horsham and Hamilton.

Mr Pallas said Victoria had only an eight per cent share of federal infrastructure funding and he expected the bonus to be paid.

"We are dealing with an indigent federal government. We are getting on with it. We are sick of the games," he said.

Wimmera Cancer Centre has missed out on additional money from the state government, above a previous $1m contribution, to help meet a $1.5m shortfall for kidney dialysis and palliative care. 

There were also multiple allocations for regional business and farming technology in the Wimmera.

$11m will be contributed to the mobile black spot program with a focus on increasing mobile telephone coverage in flood and fire prone areas with poor coverage.

$12 million will support four projects to support the adoption of internet enabled on farm technologies in north west Victoria and other regions.

"As we know, there is a digital divide in regional Victoria," Ms Pulford said.