But food campaigner and former Green MP Sue Kedgley said it appeared likely most of the report's recommendations were doomed, except the proposal to require alcohol carry a warning against consumption during pregnancy, because of the risk of harm to the fetus.
"I'm incredulous that they would chuck these recommendations out. This is a once-in-a-generation opportunity to improve our inadequate food labels."
New Zealand public health specialists say traffic light labels would force manufacturers of many red-dot foods to convert to recipes with less saturated fat, salt and sugar, to avoid a consumer backlash.
Other recommendations in the report by former Australian Health Minister Neal Blewett include encouraging McDonald's and other chain restaurants to put the traffic light labels on menus and requiring palm oil to be disclosed on food labels rather than being disguised in many foods as "vegetable oil".
Ms Wilkinson's spokesman has said she sees merit in some of the review's recommendations, "but is wary of any measures that could see increased costs forced on to consumers".
Ms Roxon told Australian media there was insufficient evidence to show that any front-of-pack labelling, including the traffic light system, provided the information consumers needed to make informed choices.