Victoria has a new Premier after Jacinta Allan formally stepped aside as Labor leader following a lengthy closed-door caucus meeting on Tuesday 28 July.

Ben Carroll was elected unopposed by Labor MPs after Ms Allan announced she would stand down, ending a premiership that lasted 1,036 days.

In a statement announcing her decision, Ms Allan said stepping aside was 'the right thing' for both the Labor Party and the Victorian people ahead of November's state election.

She said she had been prepared to contest a leadership ballot but believed doing so risked creating uncertainty at a critical time.

The Labor caucus met behind closed doors for several hours on Tuesday morning before emerging to confirm Mr Carroll as Victoria's next Premier.

Ms Allan offered her 'unqualified support' to her successor and thanked Victorians for the opportunity to serve as Premier.

"It has been the honour of my life to serve as your Premier," she said.

The changeover, coming less than four months before Victorians head to the polls, prompted immediate political reaction, with both the Coalition and crossbench MPs arguing the move represented a change of leader rather than a change of government.

Liberal Member for Northern Victoria Wendy Lovell said replacing the Premier would not address broader concerns about the government's performance.

“Switching to a different Premier is like choppering in a new captain to the Titanic after it has already hit the iceberg," Ms Lovell said.

"It’s the same ministers, the same factions, and the same failures, and the Victorian people deserve better.”

One Nation's Rikkie-Lee Tyrrell similarly argued the change amounted to 'a new head to the same snake', saying regional Victorians continued to face challenges including poor roads, rising costs, health workforce shortages, transmission line concerns, and increasing state debt.

The Victorian Farmers Federation (VFF) also weighed in on the leadership change, calling on the incoming Premier to rebuild relations with agriculture and regional Victoria.

VFF President Ryan Milgate said regional communities were seeking leadership on issues including rising costs, road conditions, renewable energy projects, and the Emergency Services Volunteer Fund.

"Ben Carroll has an opportunity to reset the relationship with agriculture and put the sector back at the centre of the state's economic future," Mr Milgate said.