The levy on new developments would have raised about $800 million each year, but the property industry and councils strongly opposed the move.
The Andrews government has dumped its controversial plan to introduce a new housing development tax to help pay for social housing projects, amid fears of a backlash on housing affordability.Treasurer Tim Pallas said the reforms were now off the table for good and would not be considered by a re-elected Labor government.He said it was "clearly a disappointing result".
"The key for the government is that we've been left with no choice given the fact that the property sector's response to these reforms has been clearly negative in tone," Mr Pallas said. The 1.75 per cent levy on the value of new developments would have raised about $800 million a year and the government said the money would have gone towards building 1,700 social housing units each year.
The Treasurer said the response was particularly disappointing "given the amount of time and effort the Minister for Planning [Richard Wynne] had put in in the engagement"."In fact what we got was a misinformation campaign.", with the latter raising concerns about costs being passed on to homebuyers.
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