The Victorian state government has scrapped a controversial $800 million (US$580 million) tax scheme to build social housing over fears that a “mischievous” scare campaign on housing affordability would do damage in this November’s state election. The Victorian government on Feb. 18 announced the introduction of a 1.75 percent housing levy on all new developments with three dwellings or more from July 2024 to raise funds for building thousands of social and affordable homes. It said that less than 30 per cent of residential planning permits would be subject to the levy, and each year the government could gain $800 million to erect about 1,700 new social and affordable homes. However, leading industry bodies raised concern that the new tax would directly hit home buyers despite the government saying it had struck an agreement with the property sector to slash red tape in exchange for levy support. After a meeting on …