Planning reforms to cut red tape will be revived by the Victorian opposition, without tacking on a now-dumped $800 million tax, if it wins the upcoming state election.
In his unofficial budget reply speech at a lunch at Crown on Thursday, Shadow Treasurer David Davis announced the policy, which the coalition hopes will cut the cost of buying and building a family home.
"It's clear that removing outdated and unnecessary red tape will result in significant economic benefits, including greater housing affordability for families looking to purchase a home," Mr Davis said in a statement.
"A Liberals and Nationals Government will deliver these planning reforms within three months of coming to office, after consultation with local government, without Labor's tax, because that is what's needed for the state to recover and rebuild."
In February, the Andrews government unveiled a $800 million a year social housing levy as part of a planning reforms package to cut approval waiting times and in turn boost sector profits.
Under the plan, a 1.75 per cent levy was proposal for new developments of more than three dwellings from 2024 to pay for up to 1700 new social and affordable homes each year.
Key industry groups expressed concern levy costs would be directly passed on to home buyers, despite the government claiming it reached a deal for levy support alongside the planning reforms.
Fearing a scare campaign in the lead-up to the November 26 poll, the state government quickly abandoned the proposed tax and adjoining planning reforms.
Treasurer Tim Pallas has since reaffirmed neither will be revisited if Labor wins a third term in government.
"We won't be proceeding with that now or anytime in the future," he said at a post-budget speaking event on Wednesday.
"We will now have to review how we can get to a position where we can have some certainty funding affordable housing. At the moment, I'm sorry, I can't give you that certainty."
In addition, the Victorian coalition have promised to cut individual and company building registration fees for tradies and set up a Victorian Productivity Commission to independently recommend more reforms within 60 days of coming to government.