Victoria's historic treaty bill looks likely to clear its first parliamentary hurdle with support from the Greens after the state Labor government conceded some changes.
The legislation paves the way for legally-enforced Aboriginal consultation on future indigenous-related decisions.
If passed, the law will become Australia's most progressive move toward treaty with the nation's first people.
"The Greens are pleased by Labor's willingness to negotiate and welcome these important changes," the party's Aboriginal affairs spokeswoman, and Victoria's first indigenous female MP, Lidia Thorpe said in a statement.
However she's disappointed the government has not moved toward a model of establishing separate treaty arrangements with several clans, each of which have traditional language, lands, customs and belief systems.
"It's not just about respect, it's about protecting our legal and human rights," Ms Thorpe added.
The bill, which is creating a framework on which the treaty can be developed, is due to be the subject of further parliamentary debate on Thursday.
"We now call on the Liberals and Nationals to join us to make sure this is a unifying step, one that brings the state together and helps to achieve reconciliation with our first peoples," Ms Hutchins said in a statement.
The government amendments define Aboriginal Victorians as "traditional owners", and guarantee the independence of the Treaty Authority.
The government indicated support for an Elders Council, but will not specify who will represent Aboriginal Victorians or restrict or determine what will be included in any treaty.
The government also announced on Wednesday a $700,000 grant scheme to support groups and organisations in treaty negotiations.
While the bill has the support needed to pass the lower house, the coalition opposition has reaffirmed its desire for a national treaty instead.
"A national approach would be a better way," Opposition Leader Matthew Guy said on Wednesday.
"A state-by-state approach is going to be hugely complex."
The Federation of Victorian Traditional Owner Corporations called the opposition's position a "cop-out".
"They're not only turning their back on traditional owners, but the 7000 Aboriginal Victorians who have already been consulted," Federation chief executive Marcus Stewart said in a statement.
Mr Stewart said the preference to handball the process to their federal counterparts was "deeply concerning" since the Turnbull government rejected the Uluru Statement's recommendation for a constitutionally-enshrined indigenous voice in parliament.
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