Premier Daniel Andrews has announced a three-stage assistance package worth about $1.7 billion to assist Victorian businesses struggling amid the coronavirus pandemic.

Key points: Businesses will be able to access the payroll tax cash refunds by next Friday

Businesses will be able to access the payroll tax cash refunds by next Friday Payroll tax that was paid by eligible businesses in the first three quarters of this financial year will be handed back

Payroll tax that was paid by eligible businesses in the first three quarters of this financial year will be handed back It will provide businesses with up to $113,975 in cash, with most receiving about $23,000

Mr Andrews said the first stage of the business survival package would consist of $550 million which would go to 24,000 small and medium-sized enterprises with a payroll of less than $3 million as a payroll tax refund.

It is hoped the cash will help keep about 400,000 workers employed and ease the growing stress being felt by the entertainment and hospitality industry.

"This is not a tax cut," Mr Andrews said today.

"It is a refund back in the accounts of businesses in just a few days' time, cash that will be critical to them being able to support their workers and in turn those workers being able to support their families."

He said another $500 million would be put into a fund for hardship payments, small grants and tailored support which would be distributed in consultation with the Victorian Chamber of Commerce and Industry, the Australian Hotels Association, the Australian Industry Group and other industry representatives.

This money will go towards sectors that "really are doing it tough" who may not pay payroll tax and require more tailored support to survive.

The third component of the package, worth more than $600 million, included a range of measures such as the waiving of 12,5000 venues' liquor licence fees due this month and worth a total of $30 million, he said.

"The balance of the package will also support people who have lost their jobs, and we acknowledge there are many people who have lost their jobs and many more who will lose their jobs in the weeks and months ahead," he said.

Commercial tenants in government buildings will also be able to apply for rent relief, a measure the Government is encouraging private landlords to offer as well.

State Opposition Leader Michael O'Brien said the $1.7 billion package was "a start".

"We need to do more," Mr O'Brien said.

"Too many businesses, too many jobs are on the line and we think there is room for improvement. But this is a start and that's something that I'm sure that people in small business will acknowledge."

He added that more detail was needed on the $500 million small business support fund.

"Those businesses, the ones that might only have one or two employees, really don't have a lot of fat to live off," he said.

"And we need to know how this fund will work because these are the businesses that are most at risk of closing their doors."

Businesses already hit hard

Wells Eicke, from entertainment labour hire company Gig Power, said almost 200 of his staff lost six months worth of work in a matter of hours last week.

"It was email, email, email, email, cancelled, cancelled, cancelled, cancelled," he said.

"Last week we had a pay run of 183 people, this week we'll be lucky to have a pay run of eight."

Wells Eicke said his business lost months worth of work when coronavirus forced mass gatherings to be banned. ( ABC News: Margaret Paul )

Mr Eicke said the Government's ban on large groups of people gathering together had cost the business more than $220,000.

Under the Government's package, any payroll tax that has been paid by eligible businesses in the first three quarters of this financial year will be handed back by the Government to provide a cash injection. Any payroll tax that was payable in the last quarter will be waived.

The refunds will provide businesses with up to $113,975 in cash, with most receiving about $23,000.

Businesses will be able to access the cash refunds by Friday, March 27.

Wells Eicke said the ban on mass gatherings both indoors and outdoors had essentially sounded the death knell for work for his staff. ( Joe Castro: AAP )

The $1.7 billion economic survival package was developed in consultation with the Federal Government following a National Cabinet meeting.

Mr Andrews said the Government had "taken the time to listen" before planning its "unique and unprecedented action to help businesses and their workers through this crisis".

"The most important thing for businesses right now is cash to save them and their workers. This is all about helping businesses stay open and keeping as many people in work as possible," he said.