Benambra MP Bill Tilley says bushfire support measures announced by Premier Daniel Andrews on Monday "miss the mark" and that full council rates relief is needed.
The Victorian government will reduce payroll tax in disaster areas and set up a flexible $10 million council assistance fund.
But the Liberal-Nationals has called for two years of council rates relief for residents who have lost homes and affected businesses.
"Unfortunately, this announcement, although welcome, neglects those businesses that have lost their pasture," Mr Tilley said.
"How many businesses in Corryong or Walwa would have a wages bill of more than $650,000 a year, because that's the point at which you have to pay payroll tax?
"How many farmers get any benefit from payroll tax relief?
"How many farmers are on town water and will get any benefit from waiving water rates?
"Even the eligibility for programs they have up and running are questionable - many farming families that have had to seek work off-farm just to survive don't qualify for the support packages.
Mr Tilley said "we need Dan Andrews to waive council rates".
"What's need is the money in the hands of the people that need it most," he said.
"State money to pay for the full cost of fixing fences that are on national park and state forest boundaries, not half the cost of materials and nothing for labour or the machines to do it."
A Victorian government spokesman said the government "would have more to say about support for fie-affected farmers shortly".
"Bill Tilley should be following the lead of his Liberal National colleagues and putting politics to one side to help those communities who need our support," he said.
"We know that farmers are doing it incredibly tough as they work to rebuild their livelihoods after these devastating fires.
"That's why we've supported them with subsidies for emergency transport of food, water and for agistment, and we're working with the Commonwealth to provide grants to cover the costs of rebuilding damaged property."
Towong Mayor David Wortmann said his council "welcomed any assistance for property owners, farmers, and small business people".
There is a maximum grant of $75,000 available for primary producers under state-and-federal-funded disaster recovery funding arrangements.
IN OTHER NEWS:
Three applications for the Emergency Bushfire Response in Primary Industries grants, including one in Towong, have been received by Rural Finance which is administering the program.
For information contact Rural Finance on 1800 260 425.
For a full list of support available visit www.vic.gov.au/bushfire-recovery-victoria.