The Victorian shadow minister for Aboriginal Affairs says he is personally comfortable if Treaty was to fall over in the state as a result of the coalition's backflip on support announced at the weekend.

Peter Walsh announced the stance in a Sky News interview on Sunday, citing concerns over cultural heritage framework.

"We have had internal discussions and we don't believe we should proceed with Treaty until issues around cultural heritage, until issues around the Traditional Owner settlement act are actually resolved," the Victorian Nationals leader said.

The path toward Treaty had previously progressed with bipartisan support in Victoria.

Speaking on ABC Radio Melbourne on Monday, Mr Walsh said the shadow cabinet shifted their position in "springtime" last year.

"It is a coalition policy. It was discussed late last year," he said.

"The whole issue around cultural heritage studies has got a lot of media attraction in the last few weeks, issues that have been raised with all our MPs but a lot of those people have spoken to me as a shadow minister.

"People are hesitant to speak out publicly because they know if they do that effectively limits the chance to get either a cultural heritage study done or to get a successful outcome out of one."

Mr Walsh said Traditional Owners Groups effectively have a monopoly under government legislation, without the same accountability other types of organisations are held to, and while the opposition are pro cultural heritage they "don't believe the legislation is delivering for all Victorians".

He also reiterated pushes for parliamentary review.

When pressed on whether he was personally comfortable if the shadow cabinet's decision resulted in no Treaty, Mr Walsh responded "yes".

The shadow minister for Aboriginal Affairs said the coalition is still committed to Closing the Gap, but stated Treaty remains "a great unknown".

"Lots of people would say, how can you have a treaty with yourself? Because we are all Australians."

On suggestion those comments could be taken as derogatory, Mr Walsh said "I'm not..I'm just saying we don't believe it's working, and we've called it out".

The concerns over cultural heritage framework are ones he said have previously been brought to the attention of Victoria's First Peoples' Assembly.

Assembly co-chair Reuban Berg told ABC in his own ABC radio interview he was not directly made aware of the shadow cabinet's backtrack before the announcement on Sunday night.

In a statement on Sunday, the Assembly the Liberal and Nationals parties decision was "disappointing, but not surprising".

On Monday Mr Berg said the path forward in Victoria is "definitely not" over.

"I think anyone who's had involvement in the cultural heritage space here in Victoria will know that it's not a perfect system…There are things that probably do need to be tweaked and adjusted not just some of the concerns raised by the Nationals, but there's many concerns from a traditional standpoint as well around that cultural heritage legislation," he said.

Mr Berg is convinced Treaty could provide opportunities to strengthen cultural heritage for the positive.

He said Traditional Owner groups have been empowered by a strong model in the state, but not properly resourced for their "important role", and it's very rare First Peoples are given the scope to properly protect culturally significant sites.

"Too often, what cultural heritage management is about here in Victoria is minimising harm," Mr Berg said.

He added there is a need for balance between heritage protection and necessary growth.

The Victorian Government has slammed the opposition's decision, saying it "leaves Aboriginal communities to pick up the pieces".