Melbourne will be home to the tallest sky-scraper in the Southern Hemisphere after State Minister for Planning, Matthew Guy, officially gave the project his seal of approval.

Standing at 388 metres, the 108 storey tower will be 91 metres taller than the Eureka Tower and become the world’s 19th tallest building when completed.

The plan has met with stiff opposition from Melbourne’s Lord Mayor, Robert Doyle, who argued that the tower would cast a semi-permanent shadow over the Shine of Remembrance.

Minister Guy said that the approval has been granted after accounting for all issues raised by the City of Melbourne as well as receiving endorsement from the Shine of Remembrance trustees.

“I am proud to approve a tower that will define our city for many years to come and which I am sure will become as iconic a Melbourne landmark as Flinders Street Station or Federation Square,” Mr Guy said.

“The Australia 108 mixed-use tower will be an icon both visually and for those who will live in it, stay at its hotel, dine at the level 84 Sky Lounge or visit the level 108 Star Bar,” Mr Guy said.

Australia 108 will feature 646 apartments, a 288-room 6 star hotel as well as retail and office space.

The entire project is a $600 million investment into the Victorian economy and will create 300 jobs in the construction and hospitality industries.

“Towers such as Australia 108 are consistent with the Coalition Government’s drive to concentrate high-density development in defined areas and out of existing, quiet neighbourhoods,” Mr Guy said.