Victorian barrister Lana Collaris has warned the Allan government's new Indigenous treaty is "seeking to create a new state within our state".

Legislation to enact the treaty has already passed through the lower chamber of Victoria's parliament, with the upper chamber widely expected to pass it into law in the coming days.

Under the treaty, Victoria would establish a First Peoples' Assembly to help develop policy which affects the state's Indigenous residents as well as oversee "truth telling" in the community.

However, critics of the plan argue the body is divisive and essentially revives the failed Voice to Parliament despite a majority of Victorians having rejected the proposal.

Speaking to Sky News, Ms Collaris argued the Victorian legislation would enable a "transference of power"

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