Knights and dames have been lanced as the Turnbull government jousts with Labor over tax reform.
A cabinet decision to drop Tony Abbott's widely lampooned idea was formally approved by the Queen, Malcolm Turnbull revealed on Monday.
"Knights and dames are titles that are really anachronistic, out of date, not appropriate, in 2015 in Australia," the prime minister told reporters in Sydney.
The change won't affect existing knights and dames of the Order of Australia, including Prince Philip.
Even constitutional monarchists such as Liberal frontbencher Alex Hawke agree with the decision. "Our constitutional monarchy is an ongoing part of the success of modern Australia, but the return of anachronistic knights and dames was unacceptable," he tweeted.
Shadow treasurer Chris Bowen said the honours should never have been brought back.
"It was a farce, a joke, a national disgrace that the Liberal-National government, of which Mr Turnbull was a cabinet minister, decided to hit the rewind button on Australia's national institutions," Mr Bowen said.
Mr Bowen also took on the government over media reports of a plan to lift the rate or broaden the base of the goods and services tax. He said the speculation would damage business and consumer confidence.
"If Mr Turnbull wants to increase the GST, he should tell Australians ... sooner rather than later," Mr Bowen said.
Mr Turnbull said the government was still gathering ideas on tax reform.
"It's premature to say that the government has landed on one particular change or another," he said.
"(But) any changes to the tax system have got to be ones that ensure that there is no disadvantage to the most vulnerable Australians."
Mr Turnbull also talked down speculation of an early election, saying he expected it would be held "around September-October next year".
One government frontbencher joked about a media report that the election writs could be issued on Valentine's Day for a March 19 election.
"Unless the Australian people want to send a Valentine to Prime Minister Malcolm Turnbull, I expect that the Australian government will serve out its full term and go to an election later next year," Liberal deputy leader Julie Bishop said.
Australian Republican Movement chairman Peter FitzSimons has also welcomed Mr Turnbull's decision.
"This is a wonderful move by the Prime Minsiter and the cabinet," he said.
"It reverses the captains pick - which, with the greatest respect to Tony Abbott, I think it was the first pick that he made where Australia went, 'We might need a new captain'."
Watch: Abbott defends 'captain's call' of knighthood for Prince Philip
