The Criminal Organisations Control Amendment Bill was introduced to Victorian parliament on Wednesday by the state Labor government.
The legislation was fast-tracked after allegations emerged in July of bikies infiltrating the CFMEU and organised crime links within the construction sector.
Under the reforms, Attorney-General Jaclyn Symes said members of organised crime gangs would be banned from entering state government worksites.
Attorney-General Jaclyn Symes says the new laws will discourage organised crime. (James Ross/AAP PHOTOS)
However, she said employers will not be tasked with dobbing in workers suspected of being involved in organised crime.
"Many members of outlaw motorcycle gangs don't make it secret that they're a member of such an organisation," Ms Symes told reporters at parliament.
"Police, in addition to obvious examples of membership, have detailed intelligence of who these people are.
"Police will be able to charge people if they are a current member of a proscribed criminal organisation if they enter a Victorian worksite."
The proscribed criminal groups, designated by Victoria Police's chief commissioner, would also be banned from publicly displaying their gang's insignia.
The change, modelled on the state's Nazi symbol ban, would make it illegal for members to wear their badge, patch or emblem on clothing, jewellery or display it on signs, flags or vehicles.
The gang colours ban was stronger than similar laws in NSW, Police Minister Anthony Carbines said.
"We've seen what works in other states but now we can go further to give Victoria Police the most contemporary powers in the nation to tackle organised crime," he said.
Another key change will lower the threshold for police to issue unlawful association orders as part of a new scheme.
The orders can be used by police to keep convicted criminals apart, with breaches attracting up to three years in prison.
Ms Symes said the changes were in direct response to police feedback that the current scheme was not working.
There will be exceptions to the orders for family members, those participating in a welfare service and to attend Aboriginal cultural events.
But the attorney-general warned the exceptions would not be granted if it was found they were being used for an ulterior motive.
"We have very much narrowed the exceptions so that they can't be used as loopholes for people to come together and fraternise and discuss criminal activities," Ms Symes said.
A new serious crime prevention order scheme will also allow the police boss to apply to a court to impose broad conditions on criminals or their likely accomplices.
The move is targeted at organised crime leaders and could prohibit people from leaving Victoria, possessing firearms or certain amounts of cash.
Opposition Leader John Pesutto said the changes were "too little too late" after official reports to parliament had shown there had been no use of anti-consorting notices in previous years.
"This bill that the Allan Labor government is bringing may well be good in terms of strengthening the existing legislation, but it won't address the actual problem," he said.
