The ACT government has abandoned plans to dramatically hike fees for nightclubs and bars open past 3am, which critics labelled as "lockout laws in disguise".
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It is the second controversial reform the ACT government has shelved ahead of October's election, after the introduction of anti-consorting laws targeting bikie gangs was put off last week.
Cabinet met on Tuesday ahead of the last ACT parliament sitting period before the election, the final chance for the government to achieve the liquor reforms in its current term.
It resolved not to push ahead with post-3am fee hikes, changes to closing times or the introduction of last drinks.
Balance-of-power Greens MLA and cabinet minister Shane Rattenbury said on Tuesday he could not support the plan, which he believed would kill off Canberra's growing nightlife and entertainment scene.
His position effectively meant the fee reform would not have passed through the Legislative Assembly, unless it secured Liberal support.
"The Greens think there are a lot of other measures that we can put in place to tackle alcohol-fuelled violence that don't involve shutting the city down," Mr Rattenbury said.
"I've indicated my view to the Labor party over the last few weeks," he said.
"Cabinet had a discussion about this. It's a big debate, there's a lot of elements to it. The outcome is that we're not going to go ahead with the legislation at this time."
Chief Minister Andrew Barr said the government was still keen to pursue other aspects of liquor reform.
He said he had listened to community concerns about the proposed changes to post-3am fees.
"After careful consideration of options in the Liquor White Paper and taking into account the broad range of community views, the government has determined to rule out making changes to rules around last drinks or closing times," Mr Barr said.
"The government will continue to work with vendors, patrons and police to keep Canberra safe."
Any other reforms would take place after the election, in late 2016.
Mr Barr said that would include lowering licence fees for lower risk venues.
Cafes would also have red tape reduced, he said.
"We will also continue to work with venues and the police to ensure our streets are safe," Mr Barr said.
"New measures will be developed to change definitions around alcohol related crimes and make it easier for venues to manage difficult customers," he said.
Earlier this year, the ACT government published its alcohol white paper setting out planned reforms for liquor licensing.
Three options for liquor licensing fees were set out: service ends at 3am with current fees; or a 300 per cent increase in fees to get a 4am licence; or a fee increase of up to 500 per cent to stay open till 5am, which is the current closing time.
Large clubs said they would simply not be able to afford staying open past 3am, if the changes were implemented.
A group named Keep Canberra Open - whose spokesman Ryan Sabet is a partner at larger nightclubs Academy and Mr Wolf - was set up to publicly oppose the last drinks measure.
More than 7000 people had signed a petition against the changes on Saturday, and a protest was due to take place this weekend.
Mr Rattenbury said he wanted the government to pursue other reforms canvassed in the white paper, saying alcohol-fuelled violence was "terrible and addressing it is very important".
He wanted licensing reforms that would encourage smaller bars, restaurants, and live music.
A proposal for a nighttime "mayor", and improving obligations on responsible service of alcohol should also be pursued, he said.
