TRADIES, nurses, doctors and teachers are among 174,000 winners from federal Treasurer Joe Hockey's decision to axe Labor's $2000 limit on tax deductions for work-related self-education expenses.

It is one of seven taxes Mr Hockey dumped on Wednesday, at a cost of $2.4 billion, despite declaring a "Budget emergency" before the election.

But the Treasurer is keeping 18 other tax hikes worth $10.9 billion, including a $5.3 billion increase on tobacco excise over four years that adds $5 to a pack of 20 cigarettes.

The Abbott Government is also keeping Labor's $963 million hit on 800,000 people with high medical expenses and an $815 million grab on unused small super accounts.

Another three taxes, including one aimed at stopping multinationals shifting profits overseas, will be watered down, at a cost of $700 million.

Mr Hockey said Labor's cap on self-education expenses was a flawed $266 million tax that hurt lower-income people trying to invest in their own education.

He said 81 per cent of those making a claim earned less than $80,000.

News_Module: Tax gift

The tax break can be used for training, education courses, textbooks and other accreditation expenses.

The biggest users include people working in health, legal, education, social work, business, and trades.

"They are the people who are trying to invest in their own education to get ahead. It was flawed policy," Mr Hockey said.

Australian Medical Association president Dr Steve Hambleton said it had been a "tax on learning that would have discouraged investment in skills and stifled excellence".

Universities Australia chief executive Belinda Robinson said it would have been a threat to productivity.

A nurse earning $55,000 taking a postgraduate course would have been $1220 worse off.

But shadow treasurer Chris Bowen said Labor wanted to crack down on rorts where unjustified "expensive overseas conferences" were claimed.

Mr Hockey said he had inherited 96 tax and superannuation changes that were announced but not legislated.

Most were Labor's; some were from 2001, when Peter Costello was treasurer.

"This is a legacy of laziness that has left taxpayers confused," Mr Hockey said.

News_Image_File: Bernadette Wilks is one of the many who will benefit from the tax changes which will axe the previous $2000 limit for work-related self-education expenses. Picture: Jason Edwards

On top of the recent move to give the Reserve Bank $8.8 billion, Wednesday's actions add another $3.1 billion to the deficit - a total of almost $12 billion since the election.

Mr Hockey repeated that he had dumped Labor's $1.8 billion fringe benefits tax crackdown on cars, that had hit car-leasing businesses.

He also abolished the tax on super pension earnings above $100,000 for 16,000 wealthy people, at a cost of $313 million.

Mr Bowen said it showed the Coalition's "twisted values" that it cut tax for high-income earners with more than $2 million in their nest egg while removing a tax cut worth up to $500 on super for 3.6 million low-income workers, including 2.1 million women.

But Mr Hockey accused Labor of having used the superannuation system as a milking cow to fix Budget problems.

He said his focus was to reduce spending not increase tax.

A tax White Paper would be commissioned and any changes taken to an election.

"Let's have some taxation stability for a while," he said.

The Coalition is also keeping Labor's $1 billion hit to research and development tax breaks for companies with incomes of $20 billion or more.

Assistant Treasurer Arthur Sinodinos will consult about 64 other taxes that are worth $72 million.

phillip.hudson@news.com.au