Tens of thousands of Victorian businesses will get tax refunds next week worth tens of thousands of dollars as the state government prepares to pump $1.7 billion of "survival" money into the economy in response to the COVID-19 crisis.

Premier Daniel Andrews said the initial part of the $1.7 billion package was aimed at keeping people in jobs. Credit:Joe Armao

Premier Daniel Andrews says about 24,000 small and medium businesses around the state will be exempt from payroll tax this financial year, with the state to begin sending out refunds by next Friday.

The move, which will cost the state’s bottom line about $550 million, is the first part of a broader financial stimulus package worth $1.7 billion. The Labor government promises to reveal more details of the package on Saturday.

Mr Andrews said the state’s "Economic Survival Package" was "unique and unprecedented" and had been developed with the federal government to focus on getting cash to businesses as quickly as possible to help them keep their workers in jobs.