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Cleaner Car Rebate to scrap inefficient cars.

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Campaign Media Release



Motorists with old, higher-emission, less fuel-efficient vehicles will be eligible for a $2,000 Cleaner Car Rebate when they purchase a new, lower-emission, fuel-efficient vehicle, under a Gillard Labor Government.

This will encourage people to get their old polluting cars off the road and help the environment for the whole community.

It is anticipated that the measure will see close to 200,000 pre-1995 vehicles taken off the road over four years from 1 January 2011 to the end of 2014, generating the following benefits over a decade:

• A reduction in carbon dioxide emissions of 1 million tonnes. • A saving to motorists of $344 million in fuel costs.

Under this measure, households that trade-in a car manufactured before 1 January 1995 for scrappage will be eligible for a $2,000 rebate when they purchase a new car with a Green Vehicle Guide greenhouse rating of six or above (220 grams of carbon dioxide per kilometre, which is around the Australian fleet-wide average).

This measure will help many Australians make the shift to a lower-emission vehicle such as:

• A university student who wants to buy a new car when they get their first full-time job. • A dad who can buy a smaller car after the kids have grown up and left home.

The number of fuel-efficient vehicles has been rising steadily. For example, about 4,200 hybrid vehicles were sold in 2009.

The program is designed for the transition period ahead of the introduction of new mandatory carbon dioxide emission standards for all new cars from 2015.

It is part of the Gillard Labor Government’s plan to make positive changes to how we live, work and travel.

Similar measures have been introduced in other countries such as the United States, but the Cleaner Car Rebate has a greater emphasis on introducing lower-emission vehicles into the Australian car fleet over the medium term.

This is an important measure for reducing the age of the Australian car fleet compared with countries overseas. While the average age of cars in Australia fell from 10 years to 9.7 years between 2004 and 2009, this was higher than recent

measurements in other countries such as the United States (9.4 years), the European Union (15 members) (8 years) and Japan (6.2 years).

The Gillard Labor Government will commit $394 million to the Cleaner Car Rebate program over the forward estimates, which will be capped over its four years of operation.

Consistent with the Gillard Labor Government’s commitment to return the budget to surplus in 3 years, this policy will be fully offset.

This initiative will be funded from redirections across the forward estimates from the Solar and CCS Flagship programs and Renewable Energy Bonus Scheme.

24 JULY 2010

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