From a kerfuffle over taxpayer-funded allowances for MPs, to a government U-turn on how to handle the heroin problem, it's been a big year on Spring Street. Here are some of the defining moments.

Euthanasia laws pass

In November, Victoria made history by becoming the first state in Australia to legalise voluntary assisted dying. The legislation passed Parliament after more than 100 hours of debate, including a marathon 24-hour sitting that was called off after one MP collapsed.

"This is a day of reform, a day of compassion, a day of giving control to those who are terminally ill," Premier Daniel Andrews said at the time.

Sorry, this video has expired Daniel Andrews says assisted dying laws give Victorians the dignity they deserve

Opposition Leader Matthew Guy personally opposed the bill, but granted his MPs a conscience vote, as did Mr Andrews.

Tempers flared during the debate in the Lower House when opponents of the bill tried to pass hundreds of amendments and delay the vote. The bill eventually passed 47 to 37.

Deputy Premier James Merlino, its highest-ranking opponent in the ALP, said it was a "a recipe for elder abuse".

Under the legislation, Victorians with a terminal illness will be able to obtain a lethal drug within 10 days of asking to die, after completing a three-step process involving two independent medical assessments.

They must be over the age of 18, of sound mind, have lived in Victoria for at least 12 months and be suffering in a way that "cannot be relieved in a manner the person deems tolerable".

The Government is now working on finalising the scheme, which will take 18 months to put in place.

The passage of the Voluntary Assisted Dying Bill prompted emotional scenes. ( AAP: Julian Smith )

Road projects cause rows

The Andrews Government revealed its plans for two big road infrastructure projects — the North East Link and the West Gate Tunnel.

Sorry, this video has expired The Victorian Government released a video explaining how the North East Link will work

The route for the $16.5 billion North East Link — selected from four options — was revealed in November.

West Gate Tunnel Project: New tunnels from West Gate Freeway under Yarraville

New tunnels from West Gate Freeway under Yarraville Widening of West Gate Freeway from eight to 12 lanes

Widening of West Gate Freeway from eight to 12 lanes 14km of new and upgraded cycling and walking paths

14km of new and upgraded cycling and walking paths New bridge over Maribyrnong River

New bridge over Maribyrnong River New elevated road along Footscray Rd

New elevated road along Footscray Rd Better access to ports, removing trucks from residential areas

Better access to ports, removing trucks from residential areas To be completed by 2022

It has the Eastern Freeway linking up to the Ring Road via a 26-kilometre road upgrade, including a new 5km tunnel.

The budget is $6 billion more than first estimated in August, and some homes and businesses will be compulsorily acquired. The Opposition supports the road, but said it would also revive the East West Link if it's elected in 2018.

Over in the west, the $5.5 billion West Gate Tunnel project courted controversy, with one planning consultant calling the business case "flawed" and a Melbourne councillor dubbing it a "dog's breakfast".

Opposition Leader Matthew Guy said the Coalition would block the extension of tolls on CityLink, which would be used to help fund the project.

The Greens were also unconvinced by the plans, but the Government says the project will provide Melbourne with a much-needed second major road link for the western suburbs.

An artist's impression of the West Gate Tunnel's northern portal at Footscray. ( Supplied: Victorian Government )

The Greens take Northcote

The death of family violence minister Fiona Richardson came as a shock to many. The 50-year-old died a day after revealing she had been diagnosed with multiple tumours, and announcing she would take time off.

Ms Richardson was remembered as a fierce campaigner against family violence and a strong voice for women in politics.

Fiona Richardson's death saddened many people within and outside of politics. ( AAP: Julian Smith )

Three months later, a by-election was held in Northcote — a seat which had been held by Labor for 90 years. But changing demographics and rising house prices in the once-working class community, which now has a strong migrant population, had seen support for the Greens grow.

The Greens made history as Lidia Thorpe became the first Aboriginal woman elected to Victoria's Parliament. The win highlighted the threat posed by the Greens to Labor's grip on state and federal inner-city seats.

Lidia Thorpe became the first Aboriginal woman elected to Victorian Parliament. ( AAP: Joe Castro )

The fire services fight heats up

As the industrial dispute between CFA management and the United Firefighters Union dragged into another year, the Victorian Government tried to break the deadlock by proposing a major shake-up of the state's fire services.

An industrial dispute prompted protests at Parliament. ( ABC News: Emma Younger )

The overhaul would have seen the CFA become a volunteer-only service. Its professional arm would have combined with the MFB to form Fire Rescue Victoria, operating in suburban Melbourne and large regional centres.

But the Government failed to get enough support from the crossbench to get the reforms through Parliament.

A former CFA board member who was sacked by Deputy Premier James Merlino during pay negotiations in 2016 sought revenge: John Schurink won Liberal pre-selection to challenge Mr Merlino in his seat of Monbulk in the 2018 election.

John Schurink (left) and Matthew Guy want to oust James Merlino. ( ABC News: Richard Willingham )

The union had also been trying to suppress the release of a Human Rights Commission investigation into bullying, sexual harassment and discrimination in Victoria's fire services.

The union argued the commission went beyond its statutory powers, but a court ruled the report could be released. It's expected to be made public in the new year.

A lobster dinner raises eyebrows

Matthew Guy became embroiled in controversy when it emerged he had attended a dinner with the alleged head of Melbourne's mafia at a lobster restaurant.

Sorry, this video has expired Matthew Guy says political donations were not discussed at the dinner

Mr Guy said he was confident he had not done anything wrong and he had no idea Tony Madafferi would be at the dinner.

But that was called into question by a recording of the man who organised it, who was heard to say he had personally briefed the Opposition Leader's office about the dinner, including Mr Madafferi's presence.

Mr Guy referred himself to the state's corruption watchdog, which decided not to investigate the matter.

But other recorded tapes revealed Liberal insider Barrie Macmillan conspired to funnel donations from Mr Madafferi and his three relatives into party coffers to avoid disclosing the source of the funds to authorities.

Sorry, this video has expired Barrie Macmillan outlines how he set up the dinner meeting earlier this year

Metro MPs claim country cash

In February, it emerged parliamentary speaker Telmo Languiller had claimed a taxpayer-funded living allowance designed to cover expenses for country MPs.

Both Telmo Languiller (left) and Don Nardella evenutally repaid the allowances. ( Supplied: Victorian Parliament )

The Labor MP listed a property in the seaside town of Queenscliff as his primary residence, more than 80km from his western suburbs seat of Tarneit. He had also maintained a second house in Footscray, in Melbourne's inner west.

It later emerged fellow Labor MP Don Nardella had also claimed the allowance while representing his seat of Melton, on Melbourne's north-west fringe. He had nominated an address at Ocean Grove, about 90km away.

Mr Languiller repaid $40,000 and the pair quit their speaker and deputy speaker roles after intense pressure.

Mr Languille later announced he would not contest the next election.

It wasn't until April, after being forced to resign from the Labor Party, that Mr Nardella agreed to repay $100,000, despite his "ardent belief" he had not broken any rules.

A drugs policy is reversed

Until October, the Premier opposed the idea of a safe injecting room for heroin users in North Richmond, which is known as the city's heroin epicentre.

Daniel Andrews promised a safe injecting room as paramedics attended a suspected overdose nearby. ( AAP: Joe Castro )

After a long-running community campaign and a recommendation from the state coroner, Daniel Andrews announced a two-year trial at the local community health centre.

As Mr Andrews announced the scheme in North Richmond, paramedics rushed to attend a suspected overdose just 50m away.

The mother of a young man who died alone in a Richmond gutter welcomed the trial, saying a safe injecting room would have saved his life.

Crown is accused of tampering

Whistleblowers accused Melbourne's Crown Casino of altering poker machines to get around state regulations and reduce returns to players. Crown rejected the claims.

Sorry, this video has expired Former casino workers claim pokies were manipulated to break rules and lower returns

The accusations were made as the Victorian Government conducted its five-yearly review of Crown Casino's licence.

Victoria's gambling regulator said it would "thoroughly investigate" claims made by former casino employees, who said they were told to remove buttons, reset machines and employ tactics to avoid reporting large transactions to the anti-money laundering agency.

The Federal Government rejected calls from MP Andrew Wilkie, senator Derryn Hinch and the Greens to commission a parliamentary inquiry.

House prices keep going up

Housing affordability was on everybody's mind this year, as prices continued to skyrocket and rental affordability worsened.

The Government said tax breaks should help first home buyers into the market. ( AAP: David Crosling )

In March, the Andrews Government moved to help first home buyers get a foot in the door by abolishing stamp duty for properties under $600,000, and discounting it for homes up to $750,000.

The grant was also doubled for first home buyers in regional areas.

The Government also introduced a vacancy tax to target empty homes in inner and middle suburbs. But Melbourne Lord Mayor Robert Doyle questioned how the vacancy tax scheme would work, saying it had proved difficult to police in Canada.

The Government's tenancy law reforms announced in October brought cheers from renters and boos from many investors.

Changes included giving renters the right to have a pet, introducing long-term leases and creating a public blacklist of landlords and real estate agents.