Victoria's First Peoples' Assembly has opened a new application process for Traditional Owner groups to apply for a reserved seat on the Assembly.

Previously membership of the Assembly has come from Traditional Owner organisations formally recognised by the Victorian government, but last year the Assembly voted to determine its own additional criteria.

Assembly co-chairman Marcus Stewart said the move empowered the Aboriginal community to choose its own representatives.

"We want to make sure everyone's voice is heard and that our cultural ways of doing business are front and centre," he said.

"We're not going to be limited by colonial structures and concepts."

From the start of this week, Traditional Owner groups in Victoria without formal recognition can apply directly to the Assembly provided they meet criteria including the group's application area not being over any land which is already covered by existing reserved seat holders.

Bangerang and Wiradjuri Elder Geraldine Atkinson said it was important the Assembly moved beyond parameters set by the government.

"I'm really pleased that we've been able to craft a new pathway to recognition that all involved have backed and we now have an agreed process to settle these matters," she said.

A Department of Premier and Cabinet spokesperson backed the Assembly's right to establish its own membership criteria.