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The $394 million for the green scheme is on hold while the fine detail of the Federal government's Cleaner Car Rebate Scheme, part of its election platform, is decided under the direction of the Minister for Innovation, Industry, Science and Research, Senator Kim Carr.
It was originally planned to fire up in January.
"We have to get this right. We need to make sure all the detail is correct," Carr tells Carsguide.
The scheme is intended to give the owners of pre-1995 clunkers a financial boost to put them into new cars, with their vehicles then sent to the scrap heap for recycling.
Carr says there is work to be done on where the $2000-a-car rebate is paid - the owner, car dealer or scrapyard - and fine detail on which cars qualify on both sides of the fence, both clunkers and greener new cars.
But the scheme under attack from several fronts, including the Australian Automotive Aftermarket Association which says it is ill-conceived and open to rorting and abuse.
"This is another pink batts debacle waiting to happen, but this one is on wheels,” says Stuart Charity, executive director of the AAAA.
The AAAA says the calculations for the rebate plan do not take account of the overall environmental impact.
"Research shows that up to 20 per cent of a car’s lifecycle emissions are produced during its manufacture and that, from an environmental perspective, the optimal vehicle life is 19 years. In calculating the environmental benefit of the Cleaner Car Rebate, no account was taken of the emissions resulting from the production of the 200,000 new vehicles put on the road," says Charity.
"Do we need to give 200,000 people $2000 of taxpayers’ money to buy an imported car that delivers average environmental performance, when the car they own now could achieve significant improvements in emissions performance after a simple service?"
But Carr stands by the scheme and says the government is committed to lowering road transport emissions, which contribute over 12 per cent of the country's carbon pollution.
"The consultation process will include the detailed design of the scheme and the method of its implementation so the government can ensure the scheme meets its objective. The government is working on a range of initiatives to lower road transport emissions. It is also helping the industry produce more efficient and environmentally friendly vehicles and components through the Green Car Innovation Fund."
