Several other councils across metropolitan Melbourne and the state are expected to follow.

Lord Mayor John So said: "Graffiti is a blight on the city and we need to all work together to clean it up."

The one-off vouchers for paint or solvent will be redeemable at specified stores.

The Municipal Association of Victoria, the peak body for the state's 79 local governments, said other councils would watch the scheme closely, with many likely to take it on.

MAV president Brad Matheson said: "There are councils that provide materials such as paint and solvents, but this is the first time there has been a financial inducement for people to clean up graffiti.

"It's innovative and anything that promotes the removal of graffiti from our community is worthwhile considering.

"Graffiti costs the community across Victoria hundreds of thousands of dollars every year.

"There will be many local governments watching this scheme with great interest to see how effective it is.

"If it is successful, and I have no doubt it will be, we would keen to work with the City of Melbourne to inform other councils about it."

Melbourne City Council also will spend $50,000 before Christmas on a clean-up blitz of highly visible graffiti around the city. It spends about $200,000 a year fighting graffiti.

"We want to ensure the city is looking its best for the millions of people who come to the heart of Melbourne to shop and relax during the festive season," Cr So said.

Fact sheets and advice on preventative measures, such as using dark paint on walls, painting murals and planting creepers and vines, are also on offer.

For more information on the initiatives, residents and businesses can telephone 9658 9658, or visit www.melbourne.vic.gov.au