Well in short Labor have announced that they will commit the sum of $394 million towards the scheme which, if Labor is re-elected is intended to cover the program between January 2011 and December 2014.
Whether this sum will be enough is in serious doubt with Industry minister Kim Carr previously estimating $1Billion would need to be spent on such a scheme to guarantee it’s success. At the time (early 2009), he rejected the idea of Cash for Clunkers arguing that it was indeed ‘too expensive’
$400m assumes that 200,000 ‘clunkers’ will be taken off the road in that time out of an estimated 2 million pre-1995 vehicles currently on the road. Whether this is likely to be an underestimate or an over estimate remains to be seen but in future posts we’ll discuss how likely the Australian public will be to take advanatge of the Cash for Clunkers rebate.
How Much Cash for Your Clunker?
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