Cleaner Car Rebate

Policy Update

The Government has decided not to proceed with the Cleaner Car Rebate Scheme, saving $429.7 million which will be redirected to help rebuild flood affected regions across Australia. The Government is undertaking a range of other initiatives to ensure that the Australian transport sector is well positioned to transition to a low carbon future.

The Government is introducing mandatory carbon emissions standards for all new light vehicles sold into the Australian market from 2015.  The Government is also leading a work program to ensure Australia’s energy markets are ready to support the potential large-scale adoption of electric vehicles and related technologies.  

The Government will also continue to support innovation and investment in the Australian automotive industry through the $3.4 billion Automotive Transformation Scheme.

In announcing the Government's response to the challenge of rebuilding flood-affected regions across Australia, the Prime Minister noted that a number of carbon abatement programs were being abolished, deferred or capped.  This included the Cleaner Car Rebate Scheme.  

Placing a price on carbon is the most effective mechanism for reducing Australia’s carbon emissions.

The Government remains committed to reducing carbon emissions in the Australian transport sector.  There is complete consensus that placing a price on carbon will be a more efficient way of reducing carbon emissions.

As such, the Government has established a Climate Change Committee to explore options for the implementation of a carbon price.  This Committee includes representatives from the Australian Greens and Independent Members of Parliament.

Further information can be found at:  http://www.ausindustry.gov.au/EnergyandFuels/CleanerCarRebate/Pages/CleanerCarRebate.aspx

The Cleaner Car Rebate was original announced in July 2010.