Victorian businesses are likely to be offered "survival payments" to help stay afloat as they grapple with the fallout of coronavirus.
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The state government floated the proposal as the number of confirmed Victorian cases rose on Wednesday to 121.
Premier Daniel Andrews has been under pressure from the opposition to roll out an economic stimulus package, since the federal government and other states announced their own.
But he says it is moving beyond the time for payments and other measures aimed at encouraging people to spend and keep the economy moving.
Instead, the Victorian government is working on a package that will help people and businesses "fundamentally survive".
"We have many, many businesses who have zero income, so offering them a tax cut doesn't necessarily do it," he told reporters on Wednesday.
"We want to make sure that they're there at the end of this virus, and we need to be providing that sort of emergency capital, that sort of emergency cash."
Mr Andrews said a package will be announced "in due course".
He stressed he wasn't being critical of economic stimulus generally, having backed the measures announced by the federal government.
"Encouraging people to spend is one thing. And I think for a whole range of other Victorians and Australians, it's survival payments that their businesses need, that their staff need, that their families need," he said.
Opposition Leader Michael O'Brien said every other state and territory has announced some form of economic stimulus, and there was no reason why Victoria should hold back.
"We need to protect jobs. We need to keep the Victorian economy strong," he told reporters.
Victorian Chamber of Commerce and Industry chief executive Paul Guerra said thousands of jobs are expected to be lost in the state as businesses do it tough.
The chamber has written to Josh Frydenberg, urging the federal treasurer to adopt measures that will help businesses of all sizes.
"If we lose staff, if we lose employers, we end up in a really bad position," he told reporters.
The City of Melbourne on Tuesday night approved a $10 million stimulus package of its own.
Victoria's 121 coronavirus cases include 27 new patients on Wednesday, six are recovering in hospital.
More than 15,200 Victorians have been tested and so far only two of the confirmed cases were infected through community transmission.
Victorian Chief Health Officer Brett Sutton said testing capacity has ramped up and results will be delivered faster.
The state government is giving $6 million to help homelessness organisations secure private rentals.
The funds will be used to create pop-up accommodation for rough sleepers who need to isolate, and boosting staff and sanitation in public housing estates.
Australian Associated Press
