Labor announces $1 billion plan to create 100,000 new jobs

Labor has pledged to spend a billion dollars to create 100,000 new jobs if it wins November's Victorian State election.

Leader Daniel Andrews said the Back to Work Act would be the first bill passed by a Labor parliament.

It would see the creation of a $100 million fund to provide payroll tax relief to companies employing unemployed youth, the long-term unemployed and retrenched workers.

An independent advisory panel would decide on how to spend a further $500 million, $200 million would be spent on supporting job-creating projects in six high-growth industries, while a further $200 million would be used to support jobs in regional Victoria.

"This is about kick starting the Victorian economy (and) incentivising businesses who take on an unemployed young person", Mr Andrews said.

Labor has also committed to four "reverse super trade missions", to bring international business leaders to Victoria.

Mr Andrews says it will also establish new Victorian Government business offices in South America, Turkey and Singapore.

However Mr Andrews would not say where the billion dollars of funding would come from.

"All of our commitments will be brought to book well before Victorians vote," he said.

The state government is claiming credit for much of Labor's plan.

"They are putting in a whole lot of things that this government is already doing," said Treasurer Michael O'Brien.

The state government had a jobs announcement of its own today, signing off a $850 million deal with Transurban to widen Citylink and the Tullamarine freeway.

Expected to create 700 jobs, the project will be funded by Transurban and is due for completion in 2018.