Mr Elliott said levies should come from general taxation, as "there is definitely going to be people who won't pay it, despite what the Government says".
"I don't care how the money is raised, it's just that victims ought to be paid a certain amount of money to keep them afloat," he said. "Some victims actually go bankrupt because they have to pay so much out.
"You can't compensate for the loss of a child, but there were so many expenses the Government doesn't seem to understand."
In a statement this week, Justice Minister Amy Adams said: "While we can never undo the hurt and grief that victims suffer as a result of crime, this levy helps ease some of the financial and emotional pressures."
The offender levy ensured offenders contributed to addressing the harm their offending had caused.
"It also generates a revenue stream that funds additional services for victims of crime."
It was forecast $4 million would be collected this financial year.