The federal government has removed a huge layer of uncertainty hanging over the economy by ditching a swathe of unlegislated tax measures, business groups and tax experts say.
But Labor, the Australian Greens, unions and welfare groups believe the coalition's decision on some measures will hit the nation's poor and let high income earners off the hook.
Treasurer Joe Hockey and Assistant Treasurer Arthur Sinodinos have sifted through 96 unrealised tax measures - five of which go back to 2001 when the previous Howard coalition government was in power.
"We are drawing a line in the sand," Mr Hockey said in Sydney on Wednesday.
"You cannot go forward with a complicated and unresolved taxation system if you want to give business and consumers the best hope that what they work hard to achieve will be achieved."
Seven measures will be dumped, while four will be dealt with by the repeal of the former Labor government's carbon and mining tax packages.
As repeatedly promised before the September election, the coalition will scrap Labor's changes to fringe benefit tax (FBT) arrangements for cars and forego revenue of $1.8 billion over four years.
A $313 million tax on superannuation accounts earning more than $100,000 per year won't proceed, and neither will a $2000 cap on work-related self-education expense deductions often used by doctors.
Three other initiatives will be heavily amended, while 18 will definitely go ahead bringing in $10.9 billion over the budget forward estimates.
These include a 12.5 per cent increase to tobacco excise duty that will raise $5.2 billion a year.
The government is also likely to ditch the other 64 tax initiatives, with a final decision to be made by December 1.
Mr Hockey said taxpayers who had already complied with any of the unlegislated proposals would get a tax refund. This doesn't mean carbon tax takings will be handed back once Labor's pricing system is dismantled next year.
Shadow treasurer Chris Bowen said some of the decisions were unfair to low paid workers.
Tax concessions for low income earners on the superannuation contributions will go under the mining tax repeal package, meaning they will receive "effectively zero" tax concessions.
"Australia's high income earners get substantial tax concessions," he told reporters in Sydney.
The Australian Council of Social Services warned low income households would bear the brunt of the government's fiscal restraint planning.
However, Australian Industry Group chief executive Innes Willox said the taxation "spring clean" would give business clear room to plan ahead.
The Australian Chamber of Commerce and Industry and CPA Australia were particularly pleased the FBT measure and the cap on self-education expenses weren't going ahead.
BDO tax partner Mark Molesworth said real and effective tax reform would require ongoing commitment to the simplification and clarity of the tax system.
The government has promised a broad tax review, but will not proceed with its recommendations without taking them to the 2016 election.
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