A controversial public housing tax will be dumped by the Victorian government after it received widespread backlash from the property industry.
Victorian Treasurerxjmtzyw Tim Pallas confirmed the $800m tax, initially planned to funnel money from developers into social housing, would be scrapped.
Under the plan, all newly built developments with three or more dwellings or lot subdivisions would hand over 1.75 per cent of the expected project value, with the cash used to fund an extra 1700 social and affordable homes each year.
The measure was only announced two weeks ago but received widespread condemnation from the industry.
