THE Victorian Government has hit a brick wall trying to push through its controversial Growth Areas Infrastructure contribution on land sales in Melbourne's urban growth boundary.

The Coalition, Greens and DLP MPs, who hold the majority in the Upper House, have warned they will not allow the Bill to pass in its current form during next week's sitting of Parliament.

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The Planning and Environment Amendment (Growth Areas Infrastructure Contribution) Bill 2009 imposes the $95,000/ha charge on anyone buying land brought into Melbourne's urban growth boundary since 2005.

The Government has argued the contribution is crucial to ensuring those who gain from the "uplift" in the value of land brought into the urban growth boundary contribute to the cost of extending roads, public transport and other infrastructure.

But opponents, such as the Taxed Out group, say the Government has stubbornly insisted on the inequitable imposition of the contribution on the first buyer of land.

Taxed Out spokeswoman Jeanette Laffan said the retrospective nature of the contribution had already led to a collapse in property sales.

Ms Laffan said the contribution acted as a deterrent to buyers, who faced multi-million dollar liabilities on land that may not be developed for years to come.

"The (property) market has been frozen since (Planning Minister) Justin Madden made the announcement," Ms Laffan said.

"More and more people keep telling the Government this is wrong - local councils, residents, builders, even developers."

She said Taxed Out was not opposed to the contribution, but wanted it applied to developers at the point where the land was subdivided for sale, not at the first point of sale.

Last month, Mr Madden announced 24,500ha of new land would be brought into Melbourne's urban growth boundary to supply enough land for the next 20 years, but he has tied the expansion to the introduction of the contribution.

At the time, he said the Government would only extend the urban growth boundary if the legislation was passed by the Victorian Parliament.

The 2009 Budget papers show the Government expects to earn $85 million from the contribution in 2009-10.

Mr Madden's office did not respond to a request for comment on what action he would take to break the deadlock on the bill.