"It would be completely irresponsible for any government to open up new land for development in a revised UGB without securing the revenue to pay for new schools, community facilities and services, public transport and health care.

"The Brumby Government has listened to community views and these are reflected in the draft legislation for the GAIC. It is our intention to collect the GAIC at the earliest possible point in the process, minimising the impact on housing affordability for Victorian families."

Meanwhile, Opposition planning spokesman Matthew Guy said the door was still open for negotiations with Mr Madden, but the model put to Parliament was flawed.

"We have been asking the Government to negotiate for the past 10 months."

Together with the Greens, who have also expressed their opposition to the bill, the GAIC could likely be voted down when it reaches the upper house.

"We all know the [State] Government has a right to seek a contribution. Let's argue about the model and how much it will gain in revenue," Mr Guy said.

He said the tax in its current form did not satisfy the community or developers.

"Put the levy at the time of development approval. Then we know how much land is being developed and we know exactly who the person is who is going to develop it so [we can be sure] we are taxing the developer."