Environment groups have welcomed the Turnbull government's retreat from plans to curb environmental advocacy but concerns remain about other proposals to restrict the charity sector.

Kelly O'Dwyer, Minister for Revenue and Financial Services, announced the government would drop its intention to require environmental charities spend at least 50 per cent of donation income on "environmental remediation work" to retain their tax-deductible status.

Attorney-General Georg Brandis and Queensland LNP leader Tim Nicholls with anti-Adani coal mine protesters during the recent state elections. Credit:AAP

"The government will not mandate a level of remediation by environmental organisations," Ms O'Dwyer said.

The push for a required level of environmental work lost traction after BHP indicated it would oppose such curbs.