The coalition plans to dump Labor's proposed crackdown on fringe benefits tax (FBT) concessions on leasing of cars.
Opposition leader Tony Abbott said this was a $1.8 billion hit on the car industry.
He said the coalition would oppose this in opposition and would not proceed with it in government.
"It's clear that this is a serious blow to an industry under pressure. This greedy grab from the government is costing sales today. It's costing jobs today," he told reporters in Brisbane on Friday.
Mr Abbott said this has been done without consultation, and meant far more paperwork for ordinary Australians.
"It's another tax hit on people who have suffered enough when it comes to tax increases," he said.
"Labor's tax hike will cost 320,000 Australians an average of $1400 per year."
Mr Abbott said this was impacting on nurses who got cars to do home visits, charity workers who needed a car to help the poor and on salesmen on modest wages who needed cars to do their business.
Labor is facing a backlash from the automotive and salary packing industry over plans to dump the FBT concession which allows cars to be leased through salary packages with costs met from pre-tax income.
Shadow treasurer Joe Hockey said Labor failed to understand the impact of their actions.
"The people most affected by this new tax from Labor are in fact people earning less than $100,000 a year, and overwhelming it is people driving cars valued less than $50,000," he said.
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