Property owners whose land has been earmarked for inclusion in the urban growth boundary have been calling for the tax slug, known as the growth areas infrastructure contribution, to be scrapped. They say their land will not increase in value when it is re-zoned, as the State Government has claimed, and the tax will ruin them. Asked about the tax by the Express Telegraph on Friday, Mr Madden said the legislation was being "fine-tuned" and he would not rule out a change to the way fees were paid on land included in the new UGB. "We're looking at that legislation at the moment. We're trying to consult more broadly on what the legislation might look like before it goes to Parliament," he said.

After months of pressure from landowners, Melton MP Don Nardella said he and other Labor MPs from Melbourne's growth areas recently met with Mr Madden calling for the GAIC to be paid when the land is developed.

Mr Nardella said his change of perspective came from talking with landowners about their situation, and he put his view to Mr Madden last week.

"The reason for the change has been the individuals who have written to me and talked to me. I could hear from them what their problems were, in a real sense."

Mr Nardella said his concerns included hearing from landowners that banks viewed the GAIC as a charge, making it hard for them to get finance to cover it. Other land may not be developed for many years, but landowners would foot the tax bill when they sold.

Mr Nardella maintained some properties would substantially increase in value when brought inside the UGB. Hundreds of Rockbank and Plumpton landowners attended community meetings and protested on the steps of State Parliament earlier this year.

Melton Council supports payment of the GAIC when the land is developed.

Western region spokeswoman for lobby group Taxed Out, Nola Dunn, said a recent leaflet campaign targeting Labor-held seats may have been a decisive factor, but the group still didn't "know whether the Government is listening to us or the developers".