Victorian Shadow Environment Minister David Davis says the proposed Indigenous wealth sharing through renewables will become a “tax” on electricity.

Mr Davis joined Sky News host Peta Credlin to discuss the proposed Indigenous wealth sharing.

“What they show very concerningly is two things – a plan to put some sort of levy or requirement for proponents to pay money and that would mean renewables proponents to pay money," he said.

“Whether it be a wire line VNI West has specifically mentioned as is the Western Link, all of those would see special money paid by the proponents.

“Now that’s obviously going to flow through to households and businesses who pay for electricity – so this becomes in effect a tax on electricity.”