The offence would have carried fines of up to $6672 or six months'imprisonment.
Attorney-General Yvette D'Ath withdrew the proposal fewer than 24 hours after introducing it to Parliament,following widespread condemnation by the media.
Ms D'Ath said the legislation was dumped"given the limited time for the parliamentary Legal Affairs Committee to consider the law changes the CCC seeks".
"The CCC bill introduced yesterday in State Parliament is withdrawn,"she confirmed in a statement.
Deputy opposition leader Tim Mander called on the government to ensure the laws would not be reintroduced if Labor wins government in October.
"Annastacia Palaszczuk also needs to explain why they even attempted to crush the freedom of the press,it only raises questions about what they are trying to hide,"he said.
"The thought that MPs could actually publicise allegations of corruption and referrals to the CCC,and the press not to do,is just unfathomable."