The Minerals Council of Australia says Victoria's incoming "gold tax" will stymie growth and investment for miners and is calling for urgent changes to the royalty.

The Andrews government announced it would increase gold royalties from zero to 2.75 per cent in this year's May budget, prompting fierce resistance from miners and industry groups.

The government expects to reap $56 million over four years through the measure.

Once the gold royalty comes into effect from January 1, Victoria will no longer be the only jurisdiction without one. Credit:Dominic Lorrimer

James Sorahan, executive director of the Minerals Council's Victorian division, said the gold royalty was a flawed scheme and urged the government to reform the model.