Bacchus Marsh's Trevor Oliver is concerned over confusing laws introduced in July 2017 that say drivers need to slow down to 40km/h when seeing the flashing lights of emergency services responders such as police, ambulance and firefighters.

But tow-truck drivers, who are often the first - and sometimes only responders - on the scene, are exempt from warning drivers with their own truck.

"Approximately 60 per cent of country road accidents are not attended by Police, CFA or SES operators due to lack of resources and coverage over a large geographic area," Mr Oliver said.

"There is also no legal requirement for emergency services personnel to attend such accidents. As such, it is left to the towing operators to ensure that employees are kept safe."

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The Bacchus Marsh operator said VicRoads had demanded a former CityLink vehicle - which Mr Oliver's family-run company purchased and registered in August last year - not be used at accident sites.

However, Mr Oliver said the truck provided a service to alert other motorists of possible danger ahead.

"The incident response vehicle used by Bacchus Marsh Towing is an ex-CityLink vehicle, built in accordance with RACV specifications for this type of work and has protected thousands of motorists, VicRoads staff and first responders," he said.

In a letter dated May 20, VicRoads threatened the company with legal action over a number of issues including "unlawful use of a major traffic control device, failure to comply with relevant laws and road rules and unlawful management of traffic on roads".

"You are directed to immediately cease use of the illuminated flashing arrows..."

VicRoads real time operations manager Keith Weegberg told The Courier tow-truck drivers were required to use the flashing warning lights when approaching accident scenes and while loading and unloading vehicles to alert road users to incidents.

"They cannot use a vehicle with an illuminated flashing arrow to direct or control traffic without written permission from VicRoads."

A spokesman for Roads Minister Jaala Pulford said extending the road rule to vehicles with yellow lights would result in many vehicles being covered which may not always be appropriate.

"Safety is our number one priority and we encourage all drivers to be aware of changed traffic conditions - including tow trucks on the side of the road," he said.

"We're monitoring the effectiveness of the road rule to identify whether it is working as intended or should be revised in any way."

Mr Oliver said the state government was playing a dangerous game with his company only trying to protect its workers.

"(Victorian Premier) Daniel Andrews has a campaign to go home safely from work, but what is the worth of my life and my drivers' life?" he asked.

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