Tax breaks, new job zones and geographically targeted visas could be used to encourage more people to move to country towns in a bid to tackle Melbourne's "unsustainable" population boom.

With 16 months before the next election, Opposition Leader Matthew Guy has launched an ambitious bid to address what some in his party believe may be the greatest long-term challenge facing the state: its unprecedented growth.

In an interim report to be released on Monday, the state Liberals have laid the groundwork for a major push to decentralise growth away from metropolitan Melbourne – where more than two-thirds of Victorian residents now live – and into regional cities and towns.

In order to do that, a number of proposals are on the table, including financial incentives for businesses to relocate (such as stamp duty or land tax concessions); geographically targeted visas (which would require people to work within a designated radius of a regional area); and an aggressive marketing campaign talking up the benefits of country towns (particularly to encourage first home buyers).