But the state planning department's Growth Areas Authority has no plans to change the tax, known as the Growth Areas Infrastructure Contribution.

More than 50 landowners from Melton - who will be slugged with the tax when they sell their properties - joined members of new lobby group Taxed Out, from other areas on Melbourne's urban fringe, whose properties will be brought into the expanded urban growth boundary.

Taxed Out spokesman Michael Hocking produced a bag of soil, which was upended on the pavement as he called it a 'down payment' on the $95,000 tax.

Mr Hocking spoke briefly and his message was clear - the money should come from the developer: "end of story".

Protesters waved placards with messages to the Brumby Government that included, 'Theft by legislation', and, 'Your home is the government's castle', while chants of "no land tax" were backed with a chorus of "Brumby is a thief".

The Taxed Out protest was joined by other protest groups, including the Concerned Councillors Coalition and an anti-desalination plant group, swelling estimated numbers to about 500.

Protester and Plumpton landowner Jack Ivankovic said the tax would spell his financial ruin. He said he faced a tax bill of $1.25 million for his property, which is valued at $1.3 million. "Twenty-five years of working to pay it off. How just is that?"

Abedin Demiri bought a three-hectare plot about three years ago. He said the tax would leave him with massive debts and nothing for his children. "Brumby has taken $95,000 from each child."

GAA chief executive Peter Seamer said charging a flat rate, rather than a percentage of the sale price, was a "fairer" method of funding the fixed costs of building necessary infrastructure in growth areas.

There were no plans to review the tax or charge it against the developer rather than when the title changed hands, he said.