Victorian Parliament has passed new legislation which sees Melbourne Cup day become a public holiday for all Council areas in Victoria except those for which other holidays have been designated.

The legislation causes every Council to now observe 11 public holidays per year.

In the past some councils had 10 public holidays.

Minister for Small Business, Joe Helper, said the legislation would mean more widespread celebration of the race that stops a nation.

``While all of Melbourne's 31 metropolitan councils celebrate the first Tuesday in November, there was a gap where some regional councils had not selected an 11th public holiday for this year,'' Mr Helper said.

All areas will now benefit from a Melbourne Cup Day public holiday, unless their council nominates a different day of regional significance to celebrate a public holiday.

The Northern Grampians Shire Council has not nominated a different day for the holiday and therefore Melbourne Cup day will be a public holiday within the shire.