Australia Launches Auto-Rebate Program

By JAMES GLYNN
SYDNEY -- Australia's ruling Labor Party on Saturday unveiled a cash-for-clunkers style scheme to woo the environmental vote ahead of the Aug. 21 federal election.

Prime Minister Julia Gillard announced the plan, which will see the government rebate 2,000 Australian dollars (about US$1,800) to anybody that trades in a car built before 1995 and buys a modern vehicle that meets current emission standards.

With the Green vote critical for both major parties ahead of the election, Ms. Gillard told reporters in Brisbane the rebate will be limited to 200,000 vehicles.

With an estimated two million cars on Australia's roads built before 1995, Ms. Gillard said this will provide "a bit of practical help" for vehicle owners wanting to upgrade.

Ms. Gillard also said that if re-elected, a Labor government would introduce new mandatory fuel efficiency standards for "the cars of the future."

"We will consult on these standards with the industry" and they will take effect in 2015, she said.

Write to James Glynn at james.glynn@dowjones.com