The Federal Government may have commissioned a root and branch review of the tax system, but there will not be root and branch reform.

The Government has ruled out more of the recommendations from the Henry tax review than it has ruled in.

Many of the highly anticipated and highly contentious proposals have been flatly rejected.

For example, the review recommends alcohol taxes be simplified to a single across-the-board volumetric tax.

But the Government has ruled that out - for now at least - saying it would be inappropriate while there is a wine glut.

The not-for-profit sector was worried it could lose its fringe benefit tax concessions and be forced to lay off staff.

The sector was right to be worried, with the review recommending the concessions be phased out. But the Government has categorically ruled that out as well.

Charities will also be relieved to learn the Government has rejected a recommendation to lift the tax deductibility threshold for donations from $2 to $25.

The review also had defence personnel in its sights, making several recommendations aimed at trimming tax concessions for defence force staff in return for higher remuneration.

But the Government has scuttled those proposals.

The review recommends integrating the Medicare levy into the personal income tax rates.

The Government was never going to accept that idea, having previously said it would stand by its plan to lower the personal income tax rates.

The Commonwealth has declined to wade into the thorny issue of changing negative gearing and capital gains tax provisions.

It has also avoided a fight over a recommendation to introduce land tax on the family home.

The Federal Government says it will not implement that recommendation because it is a state matter, not a Commonwealth one.

Other recommendations the Government has ruled out include: