ONE Nation MP for Northern Victoria, Rikkie-Lee Tyrrell, has ruled out supporting the formation of a Treaty with Victoria's Indigenous people.

The state upper house MP for the local region said she opposes potential elements of the agreement that could include financial exemptions for Aboriginal and Torres Strait Islander people.

It comes after Former Treaty Advancement Commissioner Aunty Jill Gallagher recently raised demands, which included Aboriginal people being exempt from land tax and council rates and other requests such as interest free loans to purchase homes, free tertiary education and designated seats on local councils.

“A policy that is purposely implemented for the benefit of only one race of people, to the disadvantage of every other race of people is by both definition and nature a racist and divisive policy,” Mrs Tyrrell said.

She said she has never supported a Treaty because of the lack of transparency on the process and how it would impact the lives of all Victorians.

“The Allan Labor Government has been unwilling and unable to articulate what a Treaty will be or what it will mean to all Victorians, so I have never supported it,” Mrs Tyrrell said.

“Now we learn that the government is considering including in the Treaty ridiculous and inappropriate tax exemptions for Indigenous Victorians that will divide the Victorian community rather than unite it.”

Mrs Tyrrell said the State Government had promised an initial $65 million to Traditional Owner groups just to get ready to negotiate the Treaty, with no accountability of where or how this money would be spent and reaffirmed she would not turn her back on the beliefs of her constituents regarding Aboriginal issues.

Minister for Treaty and First Peoples, Natalie Hutchins, said the government continues to back a better future for Aboriginal Victorians through Victoria’s Treaty process.

"When we listen to Aboriginal people, it means better outcomes for Aboriginal communities and all Victorians," she said.

"We continue to progress towards Treaty in Victoria, and negotiations are expected to start later this year."

The Coalition's withdrawal of bipartisan support for Treaty was announced publicly earlier this year, with Nationals Party leader Peter Walsh citing a lack of openness and transparency as the main reasons.

The government said that Victoria’s journey towards reconciliation and Treaty had bipartisan support - including in the critical 2022 Treaty Authority Bill.

"Treaty is about providing self-determination and healing for Aboriginal Victorians and creating a shared future that all Victorians can be proud of," a government spokesperson said.

"In 2018, Victoria enacted Australia’s first ever Treaty legislation which led to the establishment of the First Peoples’ Assembly of Victoria.

"The second General Election of the Assembly was held in 2023, and the newly elected representatives intend to begin state-wide Treaty negotiations this year.

"The Assembly has proven to be an effective way for Aboriginal Victorians to have a say as we continue to work together towards reconciliation."