A hot air balloon filled with tourists has come down rapidly at Dixons Creek, about 25km outside Melbourne.
The incident happened just after 7am this morning (local time) and is being described as a "heavy landing".
The balloon is understood to have been carrying 16 passengers, many of whom have received neck and back injuries.
Ambulance Victoria tweeted that it has assessed 16 passengers, and transported seven to hospital with back and ankle injuries.
All are reported to be stable.
Video images of the scene show injured passengers lying in the grass beside the balloon, while emergency services attend.
7News reports that passengers were thrown from the basket after the balloon stalled at around 500m, before descending rapidly and making a hard landing.
A spokesperson said an unexpected change of wind direction was at fault.