Victoria announces cash-for-clunkers scheme

Victorian premier Daniel Andrews has announced a ‘cash-for-clunkers’ vehicle scrappage scheme targeting young people in regional areas and a separate initiative aimed at getting drivers aged 65-plus and on lower incomes into newer and safer cars.

Both are described as pilot programs and full details are still to emerge, with the premier taking to Facebook to announce that they will be designed “to help some of our youngest and oldest drivers trade in for a safer model”.

“We’ll provide grants to help young people in regional areas scrap their old car and buy something newer and safer,” the premier said.

“The program will aim to replace 1000 older, unsafe vehicles with safer replacements.

“We’ll also support regional Victorians aged 65 and over on lower incomes, with short-term, affordable leases on newer and safer cars to help them get around safely.”

Scrappage schemes, which encourage the removal of old cars from our roads by coaxing drivers to purchase a newer – and therefore safer and more efficient – vehicle, have been used widely overseas but not in Australia.

The former federal Gillard Labor government developed a $430 million cash-for-clunkers scheme – officially known as the Cleaner Car Rebate Scheme – in 2010 to stimulate new vehicle sales in the wake of the global financial crisis, with the program to offer $2000 grants.

However, the scheme was canned as the government redirected funding towards emergency flood relief in early 2011.

The resurrection of such a scheme by the Andrews government is clearly targeted at key constituencies such as older voters and regional Victorians.

“Thirty years ago, car safety meant airbags if you were lucky and a lap belt in the middle back seat,” the premier said.

“Thankfully, a lot has changed since then. The vehicles produced today are light years from my first car – a red VB Commodore.

“But upgrading isn’t always affordable – particularly if you’ve saved hard for your very first wheels or you’re on a pension. And plenty of young people are driving cars older than they are.

“Older cars don’t have the safety features we rely on to keep us safer and are over-represented in our crash and fatality stats. This is about getting them off the road, and supporting those Victorians who need it most.

“Making things safer for everyone,” he said.

The latest motor vehicle census figures show that the average age of all registered vehicles in Victoria is just over 10 years, which is in line with the national average.