A squad of young, positive role models will be recruited to steer vulnerable kids away from extremism in a $25 million Victorian budget commitment.
The state will also spend an extra $80 million over four years to attract major events to Melbourne and regional Victoria.
Premier Daniel Andrews says next Tuesday's budget will include $25 million over four years to establish a taskforce to tackle extremism.
"We need to enlist a generation of young, positive role models who can go and speak as peers to young people who are disengaged from their families, their community, from their faith," Mr Andrews said.
Prime Minister Tony Abbott welcomed the announcement, and has offered states about $30 million for various programs to counter violet extremism.
Education Minister James Merlino will lead the taskforce, which will also look at ways to combat racism and bigotry, and address anti-Semitism and Islamophobia.
Tuesday's budget also has an extra $20 million a year over four years to help attract major events to Victoria.
"This additional funding, this is a record boost. We have never seen a boost of this size before," Mr Andrews said.
He said the money would ensure that Victorian organisations like the Victorian Major Events Company would be able to bid for the best events.
Victoria will host major international soccer games and an Olympic basketball qualifier involving Australian NBA players this year.
The government's crack down on illegal puppy farms will also receive $5 million.
Agriculture Minister Jaala Pulford said the money would help the RSPCA establish a specialised squad of inspectors with increased powers to audit puppy farms.
It would also allow for data collation, animal seizure, rehabilitation and care of animals seized from the puppy farms.
