Deputy Prime Minister and Minister for Infrastructure and Transport Anthony Albanese has rejected Moorabbin Airport's draft Master Development plan.
According to Mr Albanese, the plan has not taken into account the feedback from the local community.
"I have made a decision to not approve Moorabbin Airport’s draft Major Development Plan," he said in a press release today.
"The proposed development consisted of a large shopping precinct, with a floor space of 14,500 m² and 573 car spaces, located on the corner of Centre Dandenong and Boundary Roads.
"I am not satisfied that the planning issues, including the potential impact of the proposed development on other developments and broader plans for the region, have been adequately addressed.
"Furthermore, I am not satisfied the information provided sufficiently demonstrates that due regard has been given to feedback from the community made during the consultation period, as required under s92 (2) (iii) of the Act.
"My expectation is that any resubmitted MDP should be supported by an analysis from an independent expert panel which would provide a full assessment of the consistency of the development with the objectives of the Act, the state’s planning scheme and policies and local planning by relevant councils.
The rejected development was for retail giant Wesfarmers and was planned to contain Coles, Kmart, Officeworks and 1st Choice Liquor outlets. It was expected to create 650 jobs.
Mr Albanese specifically pointed out in the press release that the decision was made prior to the federal election writs being issued. Moorabbin Airport and surrounding suburbs are in the seat of Hotham, recently vacated by Labor's Simon Crean.