Victorian Labor Premier Ben Carroll announced on Sunday he would direct all mineral resource royalties raised in the state to its regions.
The policy unveiling came as the race to November's election heated up and Opposition Leader Jess Wilson took her campaign outside Melbourne, pledging to establish almost a dozen technical colleges to fast-track students into apprenticeships.
Labor's policy took direct inspiration from Western Australia, which rolled out a similar program in 2008 to set aside 25 per cent of royalties for regional projects.
The Victorian scheme was expected to generate $500 million over the next four years, the government said.
"This is a golden opportunity for Victoria," Mr Carroll told reporters on Sunday.
"We need to embrace it because the critical minerals race has begun.
"We are so blessed to be here in Victoria with rare earths, with gold, and we are going to do everything we can to embrace it and grow our economy."
The mining industry welcomed the move, saying the reinvestment would enable the sector to better support regional communities.
"Strategic investment in regional infrastructure will help address the big challenges regional industries and communities face, from roads to shortage of trades skills and lack of childcare and healthcare options," Minerals Council of Australia executive director James Sorahan said.
Both leaders made duelling policy announcements ahead of the final stretch of the election campaign, with fewer than 50 days until polling day as Labor seeks to achieve a historic fourth term.
Under the coalition plan, also announced on Sunday, 5000 secondary students would be given hands-on vocational education and training in trades.
"We know in the coming years, we have a serious workforce challenge in this state - a skills crisis, particularly amongst the very trades we are going to need to build new homes desperately needed," Ms Wilson said.
"We are investing in the future skills that this state needs."
The 10 new colleges would focus on training students in trades critical for building new homes and infrastructure, such as plumbing, carpentry and electrics, costing $222 million over eight years.
The plan replicated a South Australian model, announced in 2022 and marketed online as "high school, but different".
The colleges would have dedicated teachers and enrol students from years 10 to 12.
Each college would cater for up to 500 students and be located at existing secondary schools and TAFE institutes.
In August, Labor opened the Brimbank Tech School at Victoria University's Sunshine campus, which will enrol more than 13,000 secondary students from 15 partner schools.
It was the third of six tech schools established across the state as part of Labor's $116 million investment in technology education.
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