The federal opposition says job cuts at steelmaker BlueScope's Western Port facility show the government is damaging business conditions.
About 110 staff at BlueScope's mill at Hastings, southeast of Melbourne, will lose their jobs in the coming months, along with about 60 contractors, the company said on Monday.
Production at the mill is being reduced from mid-March to provide significant cost savings.
Opposition climate action spokesman Greg Hunt said it was a blow to the local community, especially as it followed steel industry job cuts last year.
"Every day, we are seeing jobs being lost in Australia," he said in a statement on Monday.
"The federal government is creating the economic conditions that are seeing long-term businesses shed Australian jobs.
"Adding further taxes to business does not encourage jobs growth."
Mr Hunt said the government needed to work with the sacked employees to provide re-training and support in identifying new jobs.