A bill has been introduced in the Victorian Parliament to bring the state another step closer to having an official treaty with its Aboriginal people.

The Advancing the Treaty Process with Aboriginal Victorians Bill recognises the Aboriginal Representative Body and enables it to negotiate with the State Government over the framework for a treaty.

It also commits funding, establishes negotiating principles, and requires the State Government and the Aboriginal Representative Body to provide annual reports on the progress of a treaty.

Victorian Treaty Advancement commissioner Jill Gallagher said it had taken years to get the bill to this point, but official treaty negotiations were still years away.

"It's taken two years of hard work, blood, sweat and tears, and we still got a lot of hard work ahead of us," Ms Gallagher said.

"It's an exciting time for Aboriginal people in Victoria.

"We've been calling for treaties for a long time, and it's exciting that it's now being taken seriously.

"I hope people value what we're trying to achieve and get on board with it."

A treaty is a formal agreement that can say and do anything that two or more parties determine within their respective powers, according to the State Government's Aboriginal Victoria body, which works on Indigenous policy reform.

Australia is the only Commonwealth country not to have a treaty with its Indigenous people.

Treaty 'road map'

More than 7,000 Victorian Aboriginal community members have been involved in getting the bill to the floor.

"It's not an easy process, and [we've] got to try and bring all community along with us, let alone our own community, but also the Victorian community in general," Ms Gallagher said.

Australia is the only Commonwealth country not to have a treaty with its Indigenous people. ( ABC Radio: Brett Williamson )

The bill will need to pass Victoria's Upper House.

Victorian Minister for Aboriginal Affairs Natalie Hutchins said she hoped it would receive support from the State Opposition.

"We acknowledge that this bill is just the beginning, but it does set out a road map for us to go forward and to be able to really get stuck into the negotiations," she said.

"Making sure that we're equally allowing both sides— that is government and Aboriginal Victorians — to be on an equal playing field."

"We know that treaties aren't negotiated overnight through both the New Zealand example and the Canadian example … what we do have is hope and goodwill, and of course, now we'll have the legislation to support it."

Opposition Leader Matthew Guy said in the past the Coalition had been against a treaty.