Television pictures showed multiple ambulances at Dixons Creek, some 60 kilometres (37 miles) north of Melbourne, and the basket of the balloon on its side.
"Seven people have been treated and transported to hospital by Ambulance Victoria paramedics after a hot air balloon landed heavily in Dixons Creek this morning," ambulance officials said.
"Paramedics were called to the scene just after 7am and assessed a total of 16 people."
The injured, many in their 60s, were all in a stable condition. No further details of their identities were immediately available.
Local reports said some of them were thrown from the basket as the balloon attempted to land after being buffeted by strong winds.
"They've experienced an unexpected southwesterly wind change at speed and the pilot had a hard landing in difficult conditions," he said.
The balloon was reportedly operated by Go Wild Ballooning, which offers trips for tourists over the Yarra Valley, drifting past vineyards and mountain ranges with distant views of Melbourne.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)