THE Victorian Government has left thousands of landholders on Melbourne's fringe with unsaleable land as it fights with the opposition over new infrastructure charges.

The Coalition, Greens and DLP MPs, who hold a majority in the Upper House, have blocked the Government's controversial plan for a $95,000/ha growth areas infrastructure contribution on anyone buying land brought within Melbourne's urban growth boundary since 2005.

Coalition planning spokesman Matthew Guy said imposing the tax on landholders at the first point of sale was grossly inequitable.

Mr Guy has argued the tax should instead be imposed on developers closer to the final point of sale.

But Mr Madden's office has accused the Opposition of failing to deliver any detailed alternative.

However, Mr Guy said he had outlined three alternatives with Mr Madden's chief of staff and a representative from Premier John Brumby's office in early December.

"They just told me it was all too difficult and couldn't be done," he said.

Yet Mr Madden's office said the Opposition had not put forward a "formal proposal".

"The lazy Opposition was not forthcoming with any formal proposal to amend the bill despite repeated requests from the Government," Mr Madden's spokeswoman said.

"Mr Guy's assertions at the meeting were not dismissed.

"He came to the meeting with a few vague ideas with no clear understanding of how they would work or improve upon the current bill before the house.

``He was asked to come back with a formal proposal and this has not happened."

"There has been support from developers and landholders for the bill in its current form.

"Our proposed bill is before the Parliament and it is up to the Opposition to propose its amendments."

In the meantime, landholder group Taxed Out has warned its members have been left with land they cannot sell while uncertainty remains on when and how the GAIC will be implemented.

"They (the Government) need to provide some certainty to landowners and the development industry," Taxed Out chairman Michael Hocking said.

"The one amendment that all groups opposed to the GAIC have been pushing for is to charge the development tax at the point of development rather than on the first sale of properties after inclusion in the urban growth boundary."